Diversifying your investment portfolio involves spreading your wealth across different assets to reduce overall risk.

One effective method is through exchange-traded funds (ETFs), which bundle multiple stocks into a single investment.

Three popular ETFs are: – SCHD (Dividend ETF): Invests in dividend-paying companies, offering a higher dividend yield than S&P 500 ETFs.

– SPY (S&P 500 ETF): Tracks the performance of the S&P 500 index, providing exposure to 500 large-cap US companies.

– QQQ (Invesco QQQ Trust): Focuses on the Nasdaq 100, giving high exposure to technology companies.

Comparing these ETFs: – SCHD has the highest dividend yield (3.5%) and a solid 5-year dividend growth rate (133%).

– SPY offers a moderate dividend yield (1.3%) and a lower dividend growth rate (5%).

– QQQ has the lowest dividend yield (0.4%) but has experienced the highest growth in share price over the past 10 years (384%).

In terms of holdings, SCHD has a more diversified portfolio across various sectors, while QQQ and SPY have a significant concentration in technology and communication services companies.

For 2024, considering the recent surge in tech stocks, investing in SCHD could provide a more balanced approach to diversification.

However, it’s important to note that past performance does not guarantee future results.

ETFs offer a way to diversify your portfolio and reduce risk.

ETFs bundle multiple stocks into a single investment, making it easy to invest in various assets and sectors.

Different ETFs cater to specific investment goals and risk tolerance.

SCHD (Dividend ETF) provides higher dividend yield, SPY (S&P 500 ETF) offers broad market exposure, and QQQ (Invesco QQQ Trust) focuses on technology companies with potential for growth.

Consider your investment strategy and market conditions when selecting an ETF.

Given the recent surge in tech stocks, SCHD may offer a more balanced diversification for 2024, but remember historical performance may not predict future results.