How You Can Beat The Market With Passive ETFs

Posted On March 1, 2018 2:25 pm

Recently I wrote an article explaining how most investors just can’t help making stupid money losing investment decisions. It’s built right into our human psychology. In fact thanks to a lack of emotional control, the track record of individual investors has been abysmal over the decades. For example between 1996 and 2015 investors’ terrible market timing and “fly by the seat of your pants” style meant that the average portfolio not only underperformed the market, but all asset classes. Heck during this 20 year period investors even lost to inflation, which was very low historically speaking.

So it’s no surprise that more and more people are heeding the advice of legendary investors such as Warren Buffett who has said that the best strategy for most people is simply to dollar cost average into a low expense broad market index fund, such as VOO or SPY (both which track the S&P 500). And it’s certainly true that this strategy, if maintained over time, will likely help most people achieve their long-term financial goals. Assuming of course that you can adopt the proper mindset.

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Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis