facebookGiven the upcoming trade war and the fact that the markets aren't doing so good now, should I just do DCA on ETF's? Or accumulate a small sum, then pick a few BC's that have historically performed consistently and reap dividends? - Seedly

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Given the upcoming trade war and the fact that the markets aren't doing so good now, should I just do DCA on ETF's? Or accumulate a small sum, then pick a few BC's that have historically performed consistently and reap dividends?

Discussion (4)

What are your thoughts?

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It would be a good idea to dca as you do not have to time the market.

Yes. You have to figure out your

1) Risk Profile (Are you risk averse or more high risk taker?)

2) Investment Horizon (2 years, 5 years, 10 years?)

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Instead of choosing one, why not have both?

Blue Chip

It's good to pick some blue chip companies which have decent both capital gains and dividends if you have an future outlook of the particularly company or sector.

ETF

ETF can act as a "safety net" in all markets conditions as you are diversifying in different industries and you are accumulating more shares when the share price is dipping. (Wall Street coined this as "Average Down").

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If you do not know how to allocate % of your capital into BC and ETF, you could take 100 - (Your Age) and that is the percentage that you will be vested in equity, ETF or even bonds.

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E.g (100 - 20) = 80%

Equity (Stocks) - 80%

ETF - 20%

James Yeo

19 Jul 2018

Editor at SmallCapAsia.com

I believe this is the question on many people minds.

I feel that it depends on one's risk profile a...

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