I can confirm that the dividends we received on the 3rd of September were from $PFF
The markets took a big step back yesterday mainly due to fears that the US could be heading for a recession, this would obviously impact people's spending and lower a lot of people's disposable income.
Our portfolio did not get away unscathed with it dropping around 1.1% but this is where ETF'S have their advantages in my eyes as individual stocks dropped far more with the likes of Nvidia losing over 9%, some of our ETF's hold Nvidia but only as a percentage of the overall assets so this mitigates the risk as the ETF can hold hundreds of assets.
$VFH has performed well in the past week gaining around 2.62% for the last 7 days, whilst $QQQ has dropped 0.78% over the last week, this comes as no surprise as it copies the performance of the NASDAQ which is the tec /IT index, and this is the sector most hit at the moment, but we must not forget the tech sector has risen dramatically this year so a pull back was inevitable at some time.
This is where dollar averaging comes in , if you have been adding funds to our portfolio on a regular basis you along with me would have probably brought a lot of the tec sector at a high price, but when markets drop as they have recently and you carry on adding funds you now buy assets at a lower price, and as previously explained this is exactly how dollar averaging works by smoothing out the ups and downs over time and instead of worrying about market drops you actually look forward to them to a degree as it gives us the opportunity to purchase assets cheaper and reap the rewards when markets re bound which they always do in time.
Thank you.
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