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Originally Posted by Delthefunky
I just opened an investing account with my bank, and I plan on contributing a good chunk of my monthly income into some ETF's. I think they make the most sense for me, just because I'm not a financial pro by any means, and I'm just looking for long term saving without much risk.
I'm just wondering how to diversify these? From what I've seen, there's some pretty good ones that return ~ 10%, but these have been mostly technology and S&P 500 composed.
What about other industries, like robotics, energy, and water?
I haven't found anything great in those categories, and wonder why I would invest in them if they don't offer the same returns as the tech oriented ones that I've discovered? I understand though that the future for these is probably pretty bright.
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Past performance isn't a great thing to go by for industry ETFs, as it sometimes means that specific industry is in a bubble.
Financial and homebuilder ETFs had great recent performance at the end of 2007, for example.
If you're picking ETFs, I think going with broad ones is a good choice. SPY for the US, and VCE for Canada. (I use VCE because it has lower fees than something like XIC).
If you put your money into a 50/50 mix of those two, I think its very likely you'd outperform something like 80% or more of investors with almost no work. You could add an international ETF at some point as well.