ETF Hound

The ETF SPY is down almost 50% on the year from it’s 52 week high of 155 and change. The dividend, which will most likely be reduced due to component securities reducing and or eliminating their dividend stands at just over 3% right now.

This all coming as a global downturn in all markets seems inevitable. The S&P 500, which SPY follows by buying in the same mix and percentage of securities may be the only ETF you’d want to tackle right now. All others, sectors, shorts, longs, options, bonds, etc have been so erratic it’s making retirees and those looking to retire soon run for the door.

If there is a return, which looks like it may take a few years, buying all the way down during these times seems like a good idea to us, although others may suggest you get out and stay out for a while, if you don’t need the money for a few years (think 10 years) you may want to buy all the way down.

This is a good way of dollar cost averaging and allowing yourself to not worry about all the ups and downs in the market. Those ups and downs can drive you crazy. Buy the SPY and forget about it might be the only ETF investing strategy that can work.