Studying, selecting, and investing in individual stocks isn't for everyone. In this clip from "Ask Us Anything" on Motley Fool Live, recorded on May 4, Motley Fool contributor Jose Najarro discusses the alternative ways to invest without choosing and buying individual stocks.
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Jose Najarro: I want to say, I only have one portfolio so all my stocks and ETFs are in that one at the moment. At the moment, I believe, I only hold two ETFs. The first is just the general S&P 500 (SPY 0.76%), SPY. This is one that I tend to add when I'm having a hard time deciding what stocks to buy. Usually, when I'm having a hard time in what stocks to buy, it means that I don't see much of attraction in evaluations. In the past, I want to say, six months, I haven't really bought the S&P 500 because I've seen these valuations decrease so I prefer investing in individual stocks at the moment. The second ETF that I hold is a Roundhill Investment ETF (METV 1.22%) called METV. This is a metaverse ETF. I know hearing the word metaverse is cringe-y sometimes, but their top 10 holdings are some of my favorite companies like NVIDIA (NVDA 2.40%), Microsoft (MSFT 0.58%), Unity (U 1.27%), Apple (AAPL 1.01%), Sea Limited (SE 1.19%), and Autodesk (ADSK 1.95%). When looking at some of these ETFs, I tend to look at their top 10 holdings and see if these are stocks I personally would invest in. The other thing for me is the overall fees that they charge. This Roundhill ETF has decreased a nice amount compared to where it was. I think it was 0.75 like most of ARK's ETF funds, but it has dropped down to about 0.5, I believe. Then, there is a third ETF that I don't hold. But if I wasn't a semiconductor guy, this is the ETF that I would purchase and it would be SMH (SMH 2.29%). It's an ETF that pretty much has 25 holdings in the semiconductor industry. Again, I enjoy ETFs that are concentrated with less than 30 positions, maybe 40 at max and outside of the general S&P 500. If I'm looking for market-specific, I'm looking to be a little bit more concentrated. SMH is their ticker, one more time for those that might wonder and it's pretty much a semiconductor ETF. And with the stock prices going down right now in the semiconductor industry, if one doesn't want to get in the individual semi stocks, I personally prefer that route.