Do you love dividends?

Do you want to grow your money while limiting your risk?

If the answer is yes...

Let's get you acquainted with Exchange Traded Funds (ETFs)

- A THREAD -
What are ETFs?

They are funds that involve a collection of different securities.

This means when you buy into the fund, you get a package of companies sold as just ONE single unit.

Why invest in ETFs?
Think of a salad 🥗

When you buy a salad, what do you get?

You get a combination of different things:

- Meats
- Vegetables
- Fruits
- Dressings

The same thing goes for an ETF.
When you invest in an ETF, you aren't just acquiring the fund.

You're acquiring everything that makes up the fund.

So you get exposed to a variety of different companies and can limit your risk.
Like individual shares, they are traded on the stock exchange.

So it makes buying and selling ETFs easy and accessible to all investors.

What's so great about ETFs is that many of them pay dividends.

So you can limit your risk and earn cash flow?

You got that right!
How does this work?

As I said, when you buy an ETF you get exposure to all the companies within the fund.

The individual companies within the fund then pay dividends on certain dates throughout the year.

When these companies pay dividends to the ETF, the ETF then pays you!
Let's take a look at Vanguard Dividend Appreciation ETF ($VIG)...

Their largest holdings are:

- Microsoft ($MSFT)
- Walmart ($WMT)
- Procter & Gamble ($PG)

When these companies pay out their dividends to shareholders, the fund collects them.

They then disperse it to you.
As great as they are for preserving wealth, ETFs come at a cost.

This is called the "Management Expense Ratio (MER)"

The average ETF carries an expense ratio of around 0.44%

This means you'll pay around $4.40 annually for every $1,000 invested in the fund.
Although you have to pay this fee, some ETFs are notorious for providing low MERs.

One of my favorites are Vanguard funds...

And it's not much considering you're paying such a low amount in fees to decrease your total exposure to risk.
While the price of an ETF can fall just like any individual share, it would take a total market collapse for you to lose all your money.

Some brokers even offer commission-free trading on ETFs which allows you to keep even more of your money.

So take advantage of this!
With commission-free trading, you can contribute small sums of money every

-Week
-Month
-Year

Or whatever you feel comfortable with.

And you won't pay fees on consistent contributions....

Which makes this a great vehicle to park your long term wealth.
How do I contribute to my ETFs?

As you might know, I'm a dividend investor so I get paid every single month from the companies I hold in my portfolio.

When I get paid, I take those earnings and place them in an ETF.

My individual dividend growth companies are funding my ETFs.
Money that wasn't even mine to begin with is earning me more money within the fund.

On top of that, it's money that's reinvested at a lower rate of risk.

Therefore I can be confident that my money is working FOR me & not AGAINST me.

That's a stock market CHEAT CODE for you.
You have to get the ball rolling to get the most out of this process.

This is what I like to call "The Cycle of Wealth"

But you first need to find companies that will pay you growing and sustainable dividends.

How do you find them?
You can use metrics and simple analysis.

I've laid it all out for you in The Complete Investors Accelerator Pack.

Don't let your hard-earned money go to waste.

Preserve it and grow it like a pro.

Learn how: https://bit.ly/dividendmoney 
You can follow @TheAlphaThought.
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