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Anonymous
Or do you balance out 50-50 between growth ETFs or index ETFs?
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Kent Toh
17 Aug 2021
Consultant at Sprinklr
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Ngooi Zhi Cheng
17 Aug 2021
Student Ambassador 2020/21 at Seedly
I don't think 50-50 is a great way to apportion your ETF allocation. Consider a core satellite portfolio, with perhaps a majority in Index ETFs and a small portion (5-20% in relevant growth sectors if you must)
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I think it depends on your investment objectives.
Personally I am young thus I can take advantage of my long time horizon and tolerate risk. Thus I am quite heavily weighted towards growth stocks. That being said, I see value in buying index ETFs that bring stability to my portfolio (such as the S&P500). It also brings diversification so that I will not be too heavily weighted in small cap growth stocks.
If i were retiring soon, I would probably allocate a higher percentage of my portfolio to index ETF because these large cap stocks will be more stable and will pay out higher dividends. Thus aligning with my goal of having more stability and dividend income to survive on.
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Yes, growth, tech ETFs. Technology fires progress and market performance.
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Alex Chua
29 Dec 2020
Seedly student Ambassador 2020/21 at Seedly
Personally growth ETFs. I am an optimist. I want to see a better place. I enjoy reading new innovati...
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50-50. Think about sector rotation - Growth ETF can also grow slower than Index at times.