One thing I find funnyâand a little confusingâis when people criticize ETFs like $QQQI and $SPYI as being âtoo risky,â but then have no problem putting money into individual stocks like $MU or $SPCX that could literally go to zero. Over the past few days, Iâve been posting about these two ETFs, and the amount of controversy has surprised me. Donât get me wrong, theyâre not risk-free. I understand that their long-term price appreciation will likely be much lower than a traditional growth ETF. But in exchange, they can generate a high level of income, much of which is currently treated favorably for tax purposes under U.S. tax rules. Thatâs the trade-off. Also, Iâm not talking about putting 50% of my portfolio into them. My plan is to allocate no more than 10% of my portfolio to these income-focused ETFs. Iâm not saying theyâre perfect investments. I just find it interesting how differently people define risk. What am I missing? Why do you think these ETFs get so much hate?
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