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In this video, I'll help you build a portfolio of three ETFs based on your goal, and I'll look at five different goals. Number one: for those who want an ETF portfolio for their children to ensure their financial success in the future. Number two: ETF portfolio for cash flow. Number three: ETF portfolio for capital growth. Number four: ETFs are a portfolio for those seeking slow, steady growth and less volatility. And number five: for those who want to protect themselves from the depreciation of the dollar. These portfolios will work in such a way that each of them will contain three different ETFs. Thanks to this, you can invest funds directly into the portfolio, and they will be distributed between the first, second, and
third ETFs. Now I have to make a reservation, okay? Investing involves risks. You are never guaranteed to make a profit when you invest. In fact, you will lose money at some point, so always do your own due diligence and never blindly trust a random guy on YouTube. Everything I'm talking about today is for educational purposes only. I'm not telling you what to invest in because I'm just a regular YouTube guy. I am not your financial advisor. My goal is to help you start thinking like an investor, because if these goals resonate with you, you may find inspiration to find investment opportunities that interest you. So, so that we understand each other, let me explain how ETFs work, because thanks to the stock market, you have the opportunity to invest in the
largest companies in the world. Instead of just going and eating a Big Mac at McDonald's, you can own a piece of the McDonald's corporation. And now, instead of spending five, seven, or ten dollars on a Big Mac, you can take the same amount of money and buy a small share of McDonald's Corporation. If you spend $10 to buy a share of McDonald's, you won't control the company, but you will be able to receive a share of their profits. This means that when McDonald's makes more money, you get richer too. If you spend $10 on a Big Mac and fries, you won't get any richer. You are making the owners of McDonald's richer. So when you buy one share of McDonald's or a fraction of a share, because yes, you can buy a fraction of one share of the company. If you buy any
share of a company, you start making profits along with it. But the problem is if you buy McDonald's stock, which by the way has the ticker MCD. So if you go to any broker and want to buy one share of McDonald's, it will be MCD. This is how they bargain. If you buy one share of McDonald's, your success depends on McDonald's. If McDonald's is doing great, they're opening locations on every corner around the world and making crazy money, you're getting richer. Why? Because their share price increases, they earn higher profits and therefore pay higher dividends, meaning you get higher payouts. But there's also a risk: if things go badly for McDonald's, they're condemned for their terrible burgers, people get sick, they start closing
stores and find themselves on the verge of bankruptcy, you pay for it. If McDonald's goes bankrupt, you will lose all your money. So, by investing in McDonald's stock, you get all the benefits, but also all the risks. And this is where ETFs offer diversification, because ETF stands for exchange- traded fund. The key word you need to understand is "fund," which means a group of stocks, a basket of stocks. This fund can give you access not only to a giant like McDonald's, but also to Coca-Cola, Apple, Amazon, Meta, and hundreds of other companies. So now, by buying one share of this fund, you are getting ownership stakes in many different companies. And now, if things go well at McDonald's, that will benefit the fund, but it could be
offset by some losers in the fund. Similarly, if McDonald's goes bankrupt, it will hurt the fund, but it will be balanced by other successful companies. So, investing in ETFs provides broader diversification, and there are now ETFs for almost everything imaginable. There are ETFs that may be better for children. There are ETFs that may be better for cash flow. There are ETFs that may be better for growth or slow and steady growth in the markets and protecting your money from US dollar inflation. So, today I want to talk about five different types of portfolios that can be built with three ETFs each. I hope this helps you make smarter decisions as an investor. So let's get down to business.
One of the cool benefits of investing today, compared to even 5 years ago, is access to artificial intelligence. Tools like ChatGPT and Claude can help you find ETFs, research stocks, and identify investment opportunities. But the problem is that many people don't know how to properly compose queries for AI, and the quality of the response depends on the quality of the query. And many don't know how to use ChatGPT, Claude, or other AI tools to research stocks, find the best ETFs, and select promising securities. That's why I'm hosting my first live broadcast on November 17th, where I'll show you how my analysts and I use AI to research stocks and find better investment decisions. This will be a completely free live broadcast. I've never done this before
. This is my first experience like this. This will be very interesting. I will be hosting it twice on November 17th: in the morning at 10:30 AM Eastern Time and in the evening at 8:00 PM Eastern Time. So, if you're an investor and want to see how to better use AI to research stocks and find investment opportunities, I invite you to join for free on November 17th. If you are interested, please note: the number of places to participate in the live broadcast is limited. I think this will be a very popular event. Therefore, I advise you to register as soon as possible. So, if you are interested, the registration link is in the description below. Let's start with the first point: creating an ETF portfolio for your children.
There are many different approaches to this task. You can choose a slower and more stable path or focus on growth. I will take a more general approach for children, because you don't know what kind of investor your child will become in the future. The most important thing is to just give them a start. So, the portfolio for kids that I suggest consists of VOO, SCHD, and VXUS. For the sake of transparency, I will state: I personally invest in VOO and SCHD. VOO provides access to the S&P 500 index. This is a group of the 500 largest companies in the stock market. This way, you get broad exposure to the United States economy. Next-SCHD. This is an ETF created by Schwab that gives you access to some of the fastest- growing
dividend-paying companies in the US. This focuses on the former-strong companies, as well as the latter-companies that are working to increase their dividends. So, that's great slow and steady growth and cash flow. And the third number is VXUS. This is another fund created by Vanguard. It provides investors with access to international companies outside the United States. Because it is a general international stock ETF. So he will invest in thousands of companies that are not located in the United States. If your kids are still young, you can be more aggressive with some of these ETFs and focus on the growth-oriented ones, which I will show you in the third point. It is rather a broad coverage of the global economy, the United
States economy, and dividends. So your children are getting access to the global economy, because we really don't know what the world will be like in 5, 10, 15, or 21 years. In this way, children gain broad exposure to the global economy. And while past performance is no guarantee of future results, let's look at how these funds have performed over the past 10 years, and we can project what it would mean if we saw similar returns over the next 10 or 20 years. Over the past 10 years, VOO has grown by an average of 15.6% per year, SCHD by 12.5%, and the total international fund outside the US by 9.2% per year, giving an average growth rate of 12.4% per year. So, now you can do the math. If you invest $500 per month and can maintain an
annualized return of 12.4%, remember that this is not the kind of return you will see every year. We've seen years of recessions, years of market crashes, but this is the average we've seen over the last 10 years. Now you can project what your income will look like over the next 10, 20, or 30 years. If you invest $500 a month in these funds and earn an average of 12.4% per annum, your money will grow to about $107,000 in 10 years. After 20 years, your money will grow to about $450,000. And in 30 years, your money will grow to just over $1.5 million. This is the power of compound interest. Now that we've talked about kids, let's talk about cash flow. Some companies, like McDonald's, make huge profits
every year. And now that they have these billions of dollars in profit sitting in their bank account, there are three things they can do with this extra money. First, they can simply put this money aside in their emergency reserve account. Second, they can reinvest these funds to open more stores, create better burgers, and develop other areas within the company. Or option number three - they can distribute this money to their shareholders. And one way to do this is through a cash payment called a dividend. It is literally money that is credited to your brokerage account, a cash dividend, a cash payment simply for owning one share of a company. That's what
dividends are, and the advantage of them is that they can provide you with a regular cash flow without any effort, but there are also disadvantages. The downside is that if the company makes big profits, it means it doesn't reinvest that money back into its development, because McDonald's could take those billions of dollars and open new outlets faster. They could open new chains, new lines, new branding, new products. This way they could grow their business faster. Instead, certain companies, like McDonald's, say, "We've reached a certain level of maturity, and we're not trying to grow extremely fast."
We just want to continue slow and steady growth. This way, we will be able to continue to pay solid dividends to our investors." So you won't see McDonald's stock price explode like you might with SpaceX or Nvidia, because SpaceX, Nvidia, Meta, and similar companies focus on growth more than cash flow. McDonald's loves cash flow, like other companies of its type. Now, let's talk about a few different types of these cash flow-focused ETFs, for those of you who, like me, love cash flow. Number one is the one we just talked about, SCHD. Again, this is an ETF created by Schwab. This gives you access to, first, strong companies and companies with growing cash flows.
This is important because companies can pay dividends once, but SCHD focuses on companies that not only pay dividends for years, but also increase them year after year. So the companies that SCHD invests in are a kind of exclusive club. It focuses on healthy companies that are working to increase their share price and also increase their dividends year after year. So, this makes it possible to invest in a wide range of companies, but specifically in those that pay stable dividends. And number two is VNQ. This is a fund from Vanguard that provides access to the real estate sector. The real estate sector is very popular among cash flow-oriented investors, as real estate is purchased precisely for the purpose of making a profit.
You buy an apartment building so that the tenants cover your expenses and bring you a net income each month. Now you can invest in real estate-whether it's apartments or offices- through an ETF like VNQ, which provides broad exposure to this industry for cash flow. Therefore, as a rule, such real estate funds provide higher cash flow. And number three is VYMI. This is a fund from Vanguard that allows you to invest in international companies with high dividend yields. The reason I personally invest in VYMI is that many foreign companies pay higher dividends than American ones because not only are the companies themselves growing, but so are the countries where they operate. The USA is a more mature country.
This is the largest economy in the world. At the same time, there are smaller countries where the population is growing faster, the economy is developing more dynamically, and the infrastructure is being developed more actively. They are seeing rapid economic growth, unlike the US, where we are only seeing a few percent annual growth because we have already reached a large scale. Many of these countries are seeking greater development, so local companies are growing faster due to the general economic upswing. So you get a double benefit: faster dividend growth and higher payouts. But there is also a risk, because this is
not the United States. Their economy may be less stable. Their currencies may be less stable. Therefore, you may encounter higher volatility, but this volatility and risk are offset by higher returns. So, let's take a look at how these ETFs have performed over the past 10 years. Over the past 10 years, SCHD has grown by 12.5%, VNQ by 5%, VYMI by 10.4%, but this is only part of the picture, because we are talking about cash flow. So let's also take a look at how their dividends have grown over the past 10 years. So, these ETFs have grown by an average of 9.3% per year over the past 10 years. And dividends are now 3.8% for SCHD, 3.7% for VYM and Q, and about 3.6% for VYMI. Again, this is as of the time of this video, which means the average dividend payout
is 3.7%, but that's not all. The dividends of these three ETFs grew by an average of about 6.5% per year. This means that if you earn the same returns for the next 10 years and invest $ 500 per month in this portfolio, it will be worth about $ 100,000 and will generate about $3,700 in annual cash flow. If you invest $500 a month for the next 20 years in the same portfolio, it will be worth about $356,000, and your annual income will be about $ 13,200. And if you invest $500 a month for 30 years, your portfolio will be worth just over $1 million, and you will receive just over $37,000 in passive annual income. This brings me to point number three-talking about growth. Here you are already investing in ETFs that try to invest in
fast-growing companies that are trying to increase their market share. Many of these companies will have zero profits as they reinvest all the money they earn to attract more customers, increase market share, and grow as quickly as possible. So you will see a lot more volatility here. You will see greater growth potential, but also the risk that some of these companies may go bankrupt more quickly during market downturns. So, more growth potential, but also more risk as you seek faster development. Let's talk about some ETFs in this category. Number one is VUG. This is a fund created by Vanguard that focuses on high- growth companies. It is aimed at those companies that are trying to increase their market share, number of users, and
customer base as quickly as possible. Next we have QQQ. It will provide you with access to the Nasdaq 100 index. This is a group of the 100 largest companies on the stock market that are not part of the financial sector. This means that these are mostly technology companies, and many of these big tech giants are not interested in making huge profits, which they want to pay out in dividends. They are making huge amounts of money to reinvest to grow bigger, faster, take advantage of AI and how technology is changing. Here's what QQQ will give you. And there is also VBk.
This is another fund created by Vanguard that gives access to small, fast-growing companies. This is an ETF for small-cap growth stocks. So, focus on smaller companies that are trying to grow as big as possible and as fast as possible. So, over the past 10 years, we have seen VUG grow by 18.3% per year, QQQ by 21% per year, and VBk by 10.9% per year, which averages out to just over 16% per year over the past 10 years. Now I have to make an additional caveat that the last 10 years have been quite exceptional in that we have had very long periods of low interest rates. These low rates are great for growth companies because it means they can borrow a lot of money and grow
faster. Low interest rates also contribute to higher valuations. Higher valuations are great for these growth companies. If we enter a decade of higher interest rates and slower growth, they will be the ones who will suffer the most. So, we've seen very rapid growth over the last 10 years due to money printing, low interest rates, and high valuations. If this continues, then yes, it's great for these funds, but if we see the opposite, it will hurt them. So remember: growth companies are more volatile, have greater growth potential, but also greater risk. This is what you are going for. But if you can earn 16% per year, let's see what happens to your money if you invest $500 per month for 10 years.
Your money will grow to about $127,000. If you invest $500 a month and earn 16% return every year for the next 20 years, your money will grow to about $692,000. And if you invest $500 a month and earn a 16% return over the next 30 years, your money will grow to over $3.1 million. This is the power of compound interest. This brings us to point four: slow and steady growth. This is for those of you who say, "You know what?" I like the idea of growth, but it sounds scary and risky. I don't know where our economy is headed. I'm worried about the recession. I'm worried about the slowdown. I'm worried that we could be in for a
decade of economic slowdown, so I don't want to invest in riskier, fast-growing assets, which are the ones that will suffer the most in a prolonged downturn. I prefer to invest in value-oriented companies, in slower and more stable businesses, because it's safer for me and I'm less nervous about all this volatility. Let me talk about a few ETFs for those who are interested. The first is the BND. This is an ETF from Vanguard that gives me access to the full bond market. It gives me access to loans worldwide, not just in the United States. The difference between a bond and a stock is that when you invest in a
stock, you are investing money in a company. You are investing in an ownership stake in a company. When you invest in bonds, you invest for the interest payment. The country or company that signs the loan agreement agrees to pay you a fixed amount of interest. And no matter how much money they make, they have to pay that interest, unless they default. So, there is less risk here, but also less profit potential. And it gives you access to these types of bonds on a global scale, not just in the US. Next is VIG. This is an ETF from Vanguard that provides access to dividend companies -those that consistently pay cash flows and work to increase their dividends annually. It's
called a dividend growth ETF and looks for companies with a long history of regularly increasing their dividends. So, these are companies that have been making profits for a long time. They saw an increase in profits. And now we assume that because they not only had large profits, but also increased them, they should continue to increase their profits, or at least there is a higher chance that they will continue to do so in the future. And again, there is the VOO S&P 500 ETF. I like to talk about it because you are actually investing in the broader U.S. economy, and the United States has the strongest economy, the strongest government, and the most powerful military in the world. So where better to invest than in the United States? So, BND has
only grown by 1.2% over the last 10 years, because, remember, you're just trying to get some interest. And most of the last 10 years has been a period of relatively low interest rates. VIG is growing at about 13.2% per year, while VOO, the S&P 500 index, is growing at just over 15% per year. This is an average of 10% per year. Now let's calculate how your money would grow. If you invest $500 a month at 10% per annum, after 10 years your money will grow to $95,000. You invest the money for 20 years, and now your amount will grow to $343,000. And if you do this for 30 years, your money will grow to almost $1 million. And that brings us to point five: protecting your money from the depreciation of the US dollar. The US dollar is not backed by gold
, it is only backed by a promise. As the U.S. government spends money it doesn't have-I mean, our national debt is over $40 trillion- this will continue. But because the government spends money it doesn't have, it has to print more money. The more money is printed, the more dollars enter circulation. As more dollars are in circulation the value of each individual dollar falls, leading to rising prices for goods. After all, more dollars does not mean more wealth, it just means that there are more currency units in circulation. So, we print more dollars, the value of each unit of currency, that is, each dollar, falls, and the prices of things rise. And if you're seriously concerned that the dollar could depreciate, let's talk about some ETFs that could
benefit from it. Number one is GLD. This is an ETF that gives you access to gold, as gold is known as a traditional hedge against the US dollar. Number two is VXUS. This is a general international ETF that provides exposure to countries outside the United States. A very broad approach to anything that is not the United States. And number three is SCHP, an ETF that will give you access to TIPS. TIPS stands for Treasury Inflation-Protected Securities, meaning these government bonds, these loans from the government, will change the interest rate of the payments depending on the level of inflation. When inflation is higher, you will receive a higher
interest rate. When inflation is lower, you will receive a lower interest rate. So let's take a look at how it's worked over the past 10 years. GLD has grown by approximately 12.1% per year over the past 10 years. VXUS is up about 9.2% over the past 10 years, while SCHP is up only 2.2 % over the same period, as inflation only became a problem after the pandemic. So, interest rates on inflation-linked bonds were very low before that. Gold wasn't really a very attractive investment before the pandemic. So over the past 10 years, we have seen the perception of what is considered a "good" investment change. Now let's project this into the future. If the average is 7.9% per year
for these ETFs, what will that same 7.9% look like in 10, 20, and 30 years if you invest $500 per month? After 10 years, your capital will grow to approximately $86,000. After 20 years, your equity will grow to approximately $271,000. And after 30 years, your capital will grow to approximately $660,000. Again, this is just an assumption that past performance will be the same in the future, which never comes true, but it does provide some insight and food for thought. Now that we've talked about these five different types of ETF portfolios, I want to talk about what makes them all work. Because the reality is that investing has risks, and people are driven by emotions. So, the way I talk about investing in ETFs, again, I
don't recommend anyone do what I do. I'm just a random guy on YouTube, but what I teach is the ABB concept, which is " always buy." When you invest in these types of ETF portfolios, the way to accumulate wealth is to "always buy." Set up an automatic system to have money withdrawn from your bank account weekly, biweekly, or monthly and invested in an ETF portfolio. And you do it when the markets are rising, when they are falling, when they are stagnant, when the economy is booming, during a recession, when there is a Republican in the White House, when there is a Democrat, when it rains or when the sun shines. Do you understand what I'm trying to say? You do it anyway because when markets are booming, some people buy more.
Others say, "Oh my god, should I buy now? "It's still too expensive." When markets fall, some people say, "We should buy now because it's cheap." Others say, "Oh, it will fall even more." And instead of playing the game of "guessing the market time," you should just keep buying. Buy anyway. This is a proven way to accumulate wealth, regardless of the state of the economy, because you are constantly trying to accumulate more. If you follow this system and have good ETFs, it is guaranteed to help create capital because you are buying markets regardless of their current state. And over the long term, this approach invariably wins. As a reminder, if you want to learn how to research ETFs, find stocks, and better analyze them using AI like
ChatGPT or Claude, join my free broadcast on November 17th. I'll show you how I do it live. We will have an interactive session. You will see everything with your own eyes. So, if you haven't registered yet for November 17, the link is waiting for you in the description. When I first started learning about money management, I avoided credit cards because I thought of them as something bad and evil. But later, when I realized that I knew how to spend money and wasn't going to spend what I didn't have for the sake of bonuses or points, I realized that I could get more cashback. I could get more rewards just by making my usual purchases with a credit card instead of a debit card. So I teamed up with my sponsor FinanceBuzz to
put together an article about my favorite credit cards. Now an important caveat. If you don't know how to manage your money, don't use a credit card. But if you're comfortable working with them, in this article sponsored by FinanceBuzz, I review my top cards at different levels. If you have debt and want to pay it off faster, I'm talking about the best cards with 0% APR. This will give you the opportunity to pay off your debts faster without accruing interest during the 0%APR period. I also review my favorite cashback cards that allow you to earn more points and cash back on regular purchases. I review some of my favorite travel cards for those of you who travel more often and earn more. And then I also talk about some of my favorite business loans. So
, if you know how to manage your money and are comfortable using a credit card, you can check out my best cards right now in the free article I left for you in the description. In this video, we talked about how an ETF gives you broad exposure to a basket of stocks, not just a single stock. This offers less risk, but also profit potential. However, it is a great way for investors to diversify their investments and gain access to a completely different type of investment. So, today we discussed five different types of portfolios. One for you and your children. Number two-for cash flow. Number three-for growth. Number four-for slow and steady development. And number five is for capital protection. We looked at three different ETFs for each of
them. And then we showed how these ETFs performed over the past 10 years. Then we predicted that if history repeats itself and we see the same returns in the future-which will never happen, because past performance is no guarantee of future performance-it still gives us a starting point. If these past performance were to continue into the future, what would that mean for your investments going forward? So we broke it down in detail for all five portfolios. And then I talked about ABB-the system that makes it work. Always buy. Buy when markets are rising, falling, or ranging-it's a way to accumulate and grow your capital through the development of markets around the world. If this video was useful to you, the best thank you is a recommendation. So if you can,
please share this video with a friend, family member, colleague, or other investor. This way we can continue to spread this kind of financial education. Thank you. I was just in New York, and someone stopped me and said, "Jaspreet, I have $10,000 in the bank. What should I do with it? Should I invest it all in the stock market now? What if the stock market crashes? Should I gradually invest it in the stock market? Or maybe I should do something riskier that might give me better returns, like pre-IPO stocks?" That's what I'm going to take a step-by-step look at.
