Friendly advice

Good shout on the ETFs, but they in themselves have some pitfalls than a novice share trader should watch out for:

  1. ETFs may include exposure to stocks you already own. Thus further increasing the weight of your portfolio on that stock.
  2. Some ETFs may include exposure to stocks you want to avoid. Eg i stayed clear of L&G battery value chain because a % was in Tesla. Now I have been proven wrong but that’s my choice and it’s one to be mindful of.
  3. Some ETFs are not diversified at all. With exposure to certain sectors (perhaps intentionally like the battery value chain I mentioned above) or unintentionally - eg the FTSE 100 is heavily weighted toward banking.

Just be careful.

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