Investing off the back of an ETF

In by James PengelleyLeave a Comment

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James Pengelley

I would be curious to hear your thoughts on an idea I had this week.

I recently bought a collection of units in 2 ETFs in Australia as well as a selection of tech stocks in the US. I have been watching the price variations over the last few weeks and I can now appreciate the upside of stock picking vs the long-game waiting period that comes with investing in an index.

I was thinking of doing something similar with my next savings stash – however I wondered about finding an etf/industry that I thought was worthwhile and offered promising returns, and then sifting through the holdings within that ETF to pick out the more promising looking stocks (perhaps using the Buffetology criteria) to effectively drop the holdings of the ETF that are underperforming, and to save money on fees.

Would love to hear what you think about this as a strategy.

J