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Why do you have ETFs only (apart from a nominal amount of cash) and no other financial instruments in your portfolios?
QuietGrowth believes that the exchange-traded fund (ETF) is the most suitable type of financial instrument to get a broad exposure to an asset class, as long as suitable ETFs are available.
An ETF is an investment fund that is traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, bonds, or commodities. Most ETFs track an index, such as the ASX 300. QuietGrowth uses ETFs that are traded in the Australian Securities Exchange (ASX) and track an index.
QuietGrowth is not restricting itself to use ETFs only. After all, ETFs are a relatively recent innovation, with a history dating from early-1990s only. Whenever QuietGrowth finds out a better financial instrument to design its portfolios, it will adopt the same.
Refer to our Investment Methodology page and ETF Investing knowledge resource for more information.
Also read the answers to the related questions:
- Why do you use ETFs in your portfolio instead of individual stocks and bonds?
- Why do all your portfolios have the same ETFs?
Additionally, you can consider to read the following knowledge resource: