Q: Can you help me understand why one would hold a company like Amazon with a 10% return in the last 12 months and 40% increase in the last 5 years compared to an ETF like VOO with a 20% return in the last 12 months and 73% increase in the last 5 years?
Where I struggle is, why take on the added risk of holding an individual stock compared to a diversified ETF? Clearly it’s shown to out perform the individual stock.
I understand holding both are likely ideal, but can you provide a reason to not sell Amazon and add to VOO? Thank you
Where I struggle is, why take on the added risk of holding an individual stock compared to a diversified ETF? Clearly it’s shown to out perform the individual stock.
I understand holding both are likely ideal, but can you provide a reason to not sell Amazon and add to VOO? Thank you
Q: I presently hold VOO .I am wondering if switching to a capped version of S&P 500 would be appropriate and if so could you suggest ETFs which would fill the bill
Q: I am having trouble deciding between market weighted versus equal-weighted ETF's.
Is it true that equal weighted portfolios often have a higher Sharpe ratio (better risk-adjusted return) but exhibit higher volatility (roughly 10% more) than market-cap weighted ones?
Is it true that equal weighted portfolios often have a higher Sharpe ratio (better risk-adjusted return) but exhibit higher volatility (roughly 10% more) than market-cap weighted ones?