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ETFs

Posted on 5/16/25 at 11:12 am
Posted by 7even Costanza
Member since Sep 2022
29 posts
Posted on 5/16/25 at 11:12 am
What is the best ETF. When they say "cheap" like $500 or $25?

TIA
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 5/16/25 at 11:16 am to
The price per share has not much to do with anything.

What the etf represents (what is in it’s portfolio) is the only thing that matters, along with how it performs percentage wise of course.
Posted by The Scofflaw
Metairie, LA
Member since Sep 2014
1901 posts
Posted on 5/16/25 at 11:20 am to
Buy fractional shares if you need to, but it will increase by the same %. So just save up and buy VOO or QQQM 1 share at a time when you can.
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2893 posts
Posted on 5/16/25 at 11:33 am to
Buying 'cheap' based on share price alone is dumb. Like grocery shopping based on price alone and not what's in the container or even size.
Finding value can be based on a variety of metrics such as P/E, EPS, EBITDA etc.
Just buy an index etf with a low expense ratio unless you want to learn a lot more first and truly think you have some insight to beat market and professionals (very unlikely.)
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
87977 posts
Posted on 5/16/25 at 11:35 am to
read the stickied thread at the top. you sound like you have no clue what you are doing newbie.

educate yourself first.
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 5/16/25 at 11:39 am to
quote:

Buy fractional shares if you need to, but it will increase by the same %. So just save up and buy VOO or QQQM 1 share at a time when you can.

Right. Let's take a look at an example:



You could have put $100 into all of these five years ago.
with QQQ you would have made $133 for a balance of $233
with SCHB you would have made $103 for a balance of $203
with VYM you'd have made $73 for a balance of $173

You could have done the same thing with a million dollars or one dollar.
The price per "share" is not relevant, only relative to what it was or what it will be (rate of return).
The only thing that matter is the amount invested and the percentage you make or lose on your investment.
Posted by bayoubengals88
LA
Member since Sep 2007
23479 posts
Posted on 5/16/25 at 11:51 am to
quote:

cheap
This is a relative term based on valuation, or what the stock/etf is worth. This is the whole game--buy a stock that's undervalued, make money. Buy a stock that's overvalued, lose money. News and catalysts are always changing valuations. See UNH recently.

I'd argue that NBIS is actually cheap at a 7bn dollar market cap which translates ~$35 price per share if there are 200 million shares outstanding.

Well, what if they issued 800 million new shares seeking a total valuation of 20 billion dollars.
Now it's only $20 per share, but not nearly as "cheap" as it was at $35 per share with a 7 billion dollar market cap.
When I look at an investment, I'm only thinking in terms of total market cap.

Read and study until this makes sense.
This post was edited on 5/16/25 at 12:52 pm
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