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ETFs or individual stocks and navigating the future


Hi, As an interested but unsophisticated investor, I like ETFs' (index funds). Given the Covid situation, in the coming years, do you think investors looking for yield and growth will have to look more to individual stocks or do you think that ETFs (like InvestSmarts' portfolios) will continue to deliver comparable returns. I have listened to the Robin Bowerman (Vanguard) and James Kirby interview but am interested in your thoughts and wonder how InvestSmart plans to navigate the economic future ...thanks Dianne - Submitted by Dianne


Hi Dianne

Although I cannot give you advice about which avenue to take regarding individual stocks or ETFs, I can point out that having a diversified portfolio structured around multiple asset classes and products has been proven to perform well over the long-term and it can also assist in buffering your portfolio from events like the one we are currently experiencing. To achieve that diversification, it can mean having both stocks and ETF in your holdings.

Regarding how InvestSMART is navigating the current and future economic environment - we are making sure our portfolios are as tightly aligned with their benchmarks, and consensus asset allocations. We have seen that even during this current scenario they continue to outperform peers with the lowest fees we can. We believe this strategy will continue to outperform over the coming decades and is the best way to navigate future economic cycles.  

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Evan Lucas
Evan Lucas
Chief Market Strategist