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Many people make a mistake in their first step when buying ETFs.
They immediately ask: Which has risen the most over the past 10 years?
Is QQQ better than VOO?
Can I still buy into semiconductor ETFs after such a big rise?
But ETFs are not a ranking of returns.
What you're buying is actually a form of risk exposure.
I've compiled a quick reference chart for US stock ETFs:
VOO / SPY: S&P 500
QQQ: Nasdaq 100 / Technology Growth
XLK: Technology Sector
SMH / SOXX: Semiconductors
DRAM: Memory Theme
SCHD / VIG: Dividends
GLD: Gold
TLT: Long-Term US Treasury Bonds
Before buying ETFs, beginners should first understand whether they are buying broad market, technology, semiconductor, memory, dividend, gold, or bonds.
Returns are just the result.
Risk exposure is what you're really buying.
Data is estimated based on adjusted prices over approximately 10 years; DRAM performance is based on its listing history. This is for informational purposes only and does not constitute investment advice.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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