best

10 Best Investments In 2020

my favorite way of investing is to take

just a tiny bit of money and make it

worth more

than what we've started with but the

problem is is that's just not quite

enough money yet

so let's make it worth a lot more by

taking it

and making it worth a lot more that's my

favorite way of investing but my second

favorite way is with etfs which is what

this video is all about

let's begin

my name is andre jake welcome back hope

you had a great week and let's get right

into the top 10 etfs or exchange traded

funds which

think of them like this simple deck of

cards which let's say is

worth 20 now your 20 will be spread out

amongst

all of these different stocks right here

contained inside of this

one fund now some of these companies or

stocks will be worth

more than others but the point of trying

to do this is to achieve full

diversification which is just a fancy

way of saying that

even though you might have a favorite

playing card you still need

the entire deck of cards to be able to

play that game of investing effectively

if that analogy made zero sense

all i'm trying to say is that i'm really

good with a deck of cards

but also never to have all of your money

into one playing card because if you

lose

that playing card you lose all your

money and that's never

stonks now as of right now there are

more than 2

000 etfs to pick from which means it is

very

difficult to decide which of the etfs

are best to buy right now

so i want to share with you my top 10

favorite etfs this is by no means the be

all

end-all guide of the best etfs this is

just what one random guy on the

internet's opinion

is and remember i play with playing

cards so keep all that in mind

now the first five i'm gonna share with

you are going to be growth oriented

and the other five are going to be cash

flow or dividend oriented which means

i don't actually have to sell those etfs

in order to make money because they pay

me either monthly or

quarterly now there are pros and cons to

both of them

but hopefully this guide will at least

point you in the right direction so you

can decide

which of these etfs works best for you

and remember

you could pick more than just one etf

you could pick two three four five as

many as you want

so having said all that let's dive right

into the top five

growth etfs and coming in at number one

is vt

let me ask you something how many stocks

do you want to own yes

by owning one vt stock you own the

entire world

you own the us market you own the

international market

basically a james bond villain at this

point but if you believe

that the world will be in a better place

20 to 30 years from now

you're going to do good and you might

want to consider this etf now because it

is

so diversified it's only returned around

5.7

since the fund was created in comparison

to u.s markets which has returned around

seven percent but vanguard thinks that

in the next 10 years

international markets are going to do

better than u.s markets

but warren buffett who's the smartest

investor in the world disagrees

but regardless of which is true one

thing is true and that's that no one has

a clue

pro tip by the way you can own something

like vt but at a slightly cheaper

expense ratio

by owning a combination of around 55 vti

and 45 vx us in doing this you'll save

yourself a tiny bit of money

especially if you have buku bucks where

point zero one percent will make some

difference

it's just another way of doing it and at

number two is qqq

now this is a very popular investment

option and i want to cover it in the

early 1900s things like

steel material and heavy industry was

the sector to invest in

we were building railroads bridges roads

infrastructure

so that sector boomed but nowadays it's

just a stable dividend sector with

nothing to brag about today of course

the

hot sector is technology and we've got

companies like apple

google amazon facebook tesla myspace

just checking to see if you're still

awake smash the like button if

myspacetom was your only friend

but by owning qqq you're gonna own more

than 100 companies from the nasdaq

that is very heavily weighed in

technology and because we are entering

the

age of technology 20 to 30 years from

now we could look back at this moment in

history and think

wow 2020 was just the beginning of

technology and we thought

it was overpriced or 30 years from now

we could look back and think

2020 was way overvaluing technology and

the best products were already created

but generally speaking

sector dominance is usually temporary or

cyclical and i know it's very tempting

to look at that graph and just assume

it's going to keep on growing like that

for the next 10 years and maybe it will

because with great power comes great

responsibility peter

which means if you want those big

returns you have to take the bigger risk

so if you're younger this fund might be

for you but just remember

this fund's beta is at 1.13 which means

it's a little bit more volatile than the

general stock market which also means

you better like emotional roller

coasters because you just bought

yourself a one-way ticket

and coming in at number three is arc

fund or ark

now this one is an actively managed fund

versus a passively managed one

an actively managed one means that there

is a real human being

who's working day and night to find

these stocks and for that reason

we have to pay a higher expense ratio of

0.75 percent which means

75 for every 10 000 that we invest here

which doesn't sound like a lot but it's

actually a lot of money when comparing

it to a lot of other funds but this one

specifically is run by kathy wood who

looks at disruptive technologies to try

to outperform the market

and she actually has because one of the

core holdings of

arc is tesla and it's performed

incredibly well this year

get this in the last year alone arc has

performed

65 gains which is insane

when comparing the overall stock market

return which has an average of

seven percent per year versus 65 percent

but its greatest strength is also one of

its greatest weaknesses because

it's actively managed and there's very

little evidence to show that

humans can beat passively managed funds

over many decades of time

there's just very little evidence to say

that we as humans can pick better stocks

than just

following the market trends so yes this

year it might be up 65

but maybe next year technology doesn't

do quite as well and it won't perform as

well but regardless if you are an ultra

aggressive investor for growth

then you might want to consider this

stock coming in at number four is the

voo

which is vanguard's s p 500 etf which is

a fancy way of saying that it tracks the

top 500 companies in the whole united

states

and you really can't go wrong with this

one it's a core holding in a lot of

people's portfolios

and its closest siblings would be

something like s d

y or s p y or spy cause i russian but

actually

s p y according to some studies because

it's got a cooler sounding ticker symbol

might actually help it perform better

than other

non-cooler sounding ticker symbols it's

weird and lastly number five is my

personal favorite and that is vti

every single working person in america

every single ceo with their fancy suits

and ties

is working every single day to make you

more money it's a really cool feeling

because you can walk into any store in

the u.s

pick up an item and say i own this but

only theoretically because

if you try to run out with that item

you'll probably get arrested but don't

try to explain to the officer that you

own point zero zero zero zero zero

zero one percent of that item because

you own vti it won't go well

trust me now my top two favorite growth

etfs vti and voo

are both virtually the same with voo

being just slightly better but they both

own the top 10 companies

that are the exact same thing but really

they are interchangeable and if you like

big companies then you should go with

voo and if you want to own all the

companies

then just go with bti but you'll not go

wrong with either one of them and you

don't have to pick one or the other you

could just own both and that's fine as

well but pro tip if you buy something

like

voo or vti and you put in 80 of your

money into that

and the other 20 into vbtlx which is a

bond etf to

smooth the ride as jl collins says then

you can be set for the rest of your life

you can literally stop watching this

video but please don't because you'll

miss out

on the cash flow and the passive income

dividend etfs

and i'll miss out on the ad revenue but

i love this fund so much

that i put it all inside my m1 finance

roth

retirement account and i did a video

with that you can watch it

please use the link down below to help

my wallet you don't have to

but please do now let's talk about cash

flow or

dividend oriented etfs now these could

pay either monthly

or quarterly because uh it's 25 cent

piece it took me forever to do that move

and coming in at number five is noble

now if dividend aristocrats could have

their own etf

then this is literally it because the

only companies inside of here

are ones that have increased their

dividend for 25 straight years or

longer that's pretty cool even though

the dividend yield is only 2.2 percent

they've grown that dividend by about 12

in the last five years

the downside is you're going to trade a

lot of growth for that stability

but not everybody cares about the yield

so you might want to consider adding

this one to your portfolio especially

if you're older and you really value

that stability and the pedigree and

history of having companies pay you

on time coming in at number four is schd

which is the charles

schwab u.s equity dividend fund this one

has a sweet spot yield of 3.44

it's dirt cheap to own at just six

dollars for every 10k

invested it's grown in value over time

which is exactly what we want to see

and in the last five years it's grown

its dividend by 10

which is great in the last year alone

it's grown its dividend by 20

it pays us quarterly and it's just an

all-around

solid dividend etf and coming in at

number three is vig which stands for

very good no it doesn't it stands for

vanguard's dividend appreciation

fund and it accepts companies that have

increased their dividends for 10 plus

years now as dividend yield is only at

1.81

but what it lacks in yield it makes up

for in growth

because it's a grower not a shower but

one way to substitute

vig is with dgro which is the exact same

principle

except the companies in this etf are

ones that have increased their dividends

by

five plus years but the two are almost

identical and coming in at number two is

vym which is vanguard's high dividend

yield etf

right now its yield is at 3.5 and since

the fund was created it has returned an

average of around

6.7 which is pretty in line with the

stock market

it's got a really dirt cheap expense

ratio of 0.06

as well and by owning this one stock you

will own

428 different stocks which means you

will be extremely well diversified

there's not that many bad things i can

say about it it's an all-around amazing

etf which i'd like to own more of

and at number one is sp hd now i have

around six thousand seven hundred

dollars invested into this one

and it's paying me around five point

five percent which is an extremely high

yield

but it's got a pretty high expense ratio

to boot point three percent which

doesn't sound like a lot

but it is actually a lot the good thing

though is that it pays me monthly

but it's not necessarily my number one

favorite i like a lot of these on this

top five list for different reasons

some of them have better growth and

lower yield and other ones have lower

growth and higher yield

it's a balancing act but whichever one

you choose you really can't go wrong

with any of these but before you quit

this video thinking

cool got my list never seen that guy's

videos again not so fast because if you

don't watch this next part

you're going to make this very common

mistake you're going to open up your

brokerage account you're going to look

through all the other dividend etfs that

people are buying

and you're going to see one that's

called sdiv the super dividend etf which

sounds like what my childhood dreams are

made of

no but seriously imagine a super saiyan

etf at least that transformed into a

super saiyan right away

instead of screaming at you for half an

hour before i did it but anyway you're

going to find sdiv and you're gonna see

the monstrous 12

dividend yield you're gonna see that it

pays you monthly and that you could earn

more money with a hundred thousand

dollars than i'm earning with two

hundred thousand dollars

so why not then just put all of your

money into sdiv

audrey was an idiot i found something

way better but there's a few reasons why

you shouldn't do this

and reason number one it's got a pretty

high expense ratio of 0.6

which doesn't sound like a lot when

you're making 12 right

not exactly because when you have a

dividend yield that high

that means it's probably investing in

companies that are unstable

and whose prices are falling lower and

lower because there's an

inverse relationship between the

dividend yield and the price

as the price gets lower the dividend

yield goes higher

and because of that look at what the

sdiv stock price has done

since 2011. you see that that's your

money curling up into a fetal position

like voldemort at king's cross but if

you invested a hundred thousand dollars

in 2011

sure you would have made some money with

your dividends but after

all that time your 100 000 would be

worth less than

half of what it was when you originally

invested so it's almost like you're not

really making money

you're just robbing it from one place

and putting it somewhere else but as

you're running

the bills are just falling behind you so

you're actually not doing anything and

that's what's called a value trap which

is a mistake

a lot of people will make because they

didn't get to this point in the video

remember that investing is a long-term

game and you're better off going with

something more conservative today

something like a two percent dividend

yield because 20 30 years from now after

holding that fund

you could increase your yield on cost to

something like four

or five six percent or even more and we

want that trifecta right

we want that principal equity to grow in

value meaning the stock price itself is

increasing

we want those dividend payouts and we

want those dividend payouts to increase

over time

but better yet you're probably better

off going with just vti

and you'll outperform most of the

average dividend investors

probably not a guarantee but probably

dividends give you a really good peace

of mind but if you like growth investing

then you really can't go wrong with the

etfs that i've provided

but whatever you do before you invest

just make sure you do your own research

because you can always lose money

especially

short term long term though you'll

probably end up making money because the

stock market has been

the best performing asset class in the

entire world but having said that i'm

sure i've missed a few of your favorite

etfs and if i have

let me know in the comments below and

i'll try to include them maybe in part

two but in the meantime if you've not

already done so

sign up with weibo for free you'll get a

free stock fund your account 100

get a second free stock valued up to one

thousand four hundred dollars in value

your third free stock from robin hood

and i totally sound like a salesman now

but you can also join my free discord

link below

follow me on instagram i post from time

to time love you lovely people i will

see you back here on monday and friday

and before i go i have a very important

question for you which is

which one is your favorite etf but more

importantly is a hippopotamus

a hippopotamus or a really cool

hippopotamus

i'll see you soon bye

[Music]

you