-the fact that a tiny portion of asset managers and investors are able to consistently beat indexes
–unmatched diversification through ETF’s where one purchase can give you exposure to thousands of assets from around the world
–the time saved by simply tracking a target asset allocation
–index investing gives you exposure to other asset classes such as fixed income, real estate, etc.
On the other hand, dividend investors raise strong points:
–less fees: even though ETF fees are much smaller than mutual funds, they do charge more than holding those stocks directly
–more control: being able to select your type of portfolio, holding stocks that you believe in and going for the stocks that you know and targeting the yield that matches you
–more fun?: there’s no doubt that trying to make the best stock picks involves a lot more than simply buying that ETF and does become a challenge
Do We Really Have To Choose?
This might come as a surprise but I actually include both strategies in my retirement investment strategies and have been doing very well that way. I feel like I can enjoy both sets of benefits to some extent.