Exchange-traded funds (ETFs) are a great way to invest in diverse markets and avoid putting all your eggs in one basket. An ETF is a collection of stocks, bonds, or other assets bundled together and traded on a stock exchange. Most ETFs track a specific benchmark or index. For example, an ETF may track the S&P 500 (^GSPC +1.18%), Russell 3000, or Nasdaq Composite (^IXIC +2.07%).

ETFs make it easier for new investors to build a portfolio while spreading out the risk. If you're not quite sure how to get started (or how to make the most of ETFs), here are four strategies that can help. You don't have to adopt them all at one time, but keep them in mind if you're looking to grow wealth while managing risks.

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1. Dollar-cost averaging

Dollar-cost averaging is a straightforward way to build wealth while minimizing the impact of market ups and downs on your portfolio. The idea is: Invest a fixed amount at regular intervals, no matter what's happening in the market.

By investing at fixed intervals, you remove emotion from the decision-making process. Better yet, regular investing, regardless of what's happening in the market, allows you to add great bargains to your portfolio when the market is down and potentially enjoy unimpeded growth as it rebounds.

2. "Core and satellite" portfolio building

Core and satellite portfolio building is all about balancing steady growth with riskier investments that may yield higher returns. It's split into two parts:

• Core holdings: These make up 60% to 80% of your holdings and focus on ETFs that track broad indexes, such as the S&P 500. The goal is to deliver returns that mirror the overall market.
• Satellite holdings: The remaining 20% to 40% of your holdings can focus on specific sectors, for example, technology or energy, which could give you access to hot industries.

The percentage you choose to invest in core or satellite holdings is up to you. If you're unsure how much to invest in each, consider meeting with a financial advisor to help you calculate your risk tolerance. Look for someone who's a fiduciary. 

3. International markets

As you've probably heard 1,000 times, "diversify, diversify, diversify." One way to do this is to use ETFs tied to international markets. You may want to begin by focusing on developed markets. Later, when you have your sea legs, you can gradually include emerging markets for a jolt of growth.

Investing in international markets allows you to capture opportunities outside the U.S. and build a portfolio that can withstand regional market shifts.

4. Income-producing dividend ETFs

Dividend ETFs focus on companies well known for paying dividends. One thing these ETFs have in common is providing income through yields while also keeping expense ratios low. There are some great income-producing ETFs on the market, but three of the most successful in 2026 are:

• Capital Group Dividend Value ETF (CGDV +1.59%)
• Fidelity High Dividend ETF (FDVV +0.37%)
• JPMorgan Dividend Leaders ETF (JDIV +0.54%)

ETFs can provide an excellent mash-up of diversification, low fees, tax efficiency, flexibility, and liquidity. They're great for beginning investors and the four strategies above can be great ways to start your ETF investing journey.