Adding Bonds, REITs, and Other ETFs to Your Portfolio
In this part . . .
The majority of ETFs — all those I discuss in Part II — represent common stock holdings. In this part, I introduce you to the minority: those ETFs that represent bonds, real estate investment trusts (REITs), and commodities such as gold, silver, and oil. Such holdings (especially bonds) have enormous diversification power: the power to protect you when the stock market takes a big roll, as it inevitably does from time to time. (I probably don’t need to tell you that!)
For sure, you have various means of owning such holdings. You can buy individual bonds, investment properties from foreclosure sales in Nevada (be careful not to step on a cactus), gold coins, and silver bullion. Heck, you can fill your garage with barrels of oil. But no method is as easy, efficient, and frugal as holding them as ETFs.