Buying ETFs

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Hey!
Is there anything i should consider when buying an ETF that tracks stocks i own individually? So for example, If i own shares in Shopify, Amazon, and FB individually and plan to buy an ETF that tracks the same companies and more, is that “okay”? or Is that almost always the case when investing in ETFs? Or is it totally up to the investor?

Thanks!

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Asked on October 20, 2020 2:52 pm
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Private answer

Well, we have to understand the fact that if we allocate say.... 10% of our portfolio to tech stocks, purchasing another 10% in a tech ETF is going to bloat our exposure to 20%.

However, say your portfolio contains 10% Shopify,Amazon and Facebook and you are looking at an ETF that isn't specifically focused on tech that has a 6% total allocation to the three (I'm really just spitballing figures here) that really wouldn't concern me as 94% of the ETF is elsewhere.

I hope this makes sense. Let me know if it doesn't.

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Posted by Dan Kent
Answered on October 20, 2020 4:42 pm