01 July 2017

Why ETF is not always the best choice?

With a stock, maybe. You could pick the right one and put all your $10k in it. You might get lucky to have it double or triple like Apple has done since it initiated its dividend and capital return program about 5 years ago. 
With an ETF, definitely not. But you also are way more likely to have preserved your principal. I think a dividend-focused broad based index fund like DVY will get you about 3–4% per year in dividends, plus will match the market return on price appreciation which is about 8% per year. So let’s say, in total, about 10–12% per year without too much undue risk. 
To get rich, you have to take risks. Sometimes they work out. Sometimes they don’t. But excess risk and excess return are pretty highly correlated. Not saying that all risk always get all returns. So to have the best gains for your investment, it is necessary to take some calculated risks. 
//amazon