U.S. employers added 162,000 jobs in August 2026, while the unemployment rate remained at 4.1%, data from the U.S. Bureau of Labor Statistics shows. Yet hiring remains cautious. July recorded 5.1 million hires, and hiring in professional and business services fell by 188,000. For workers planning decades ahead, that matters because retirement security depends on earning power long before it depends on portfolio withdrawals. Traditional retirement planning often focuses on stocks, bonds, diversification and withdrawal […]

ETFs For Beginners Investing in the stock market is one of the most effective ways to build wealth over time. But picking individual stocks requires extensive research, timing and risk management. Learn why Exchange-Traded Funds (ETFs) offer a simpler, low-cost alternative for both beginners and experienced investors. Find out exactly what an exchange traded fund is. Learn why index exchange traded funds make the most sense for investors. And, unpack how to invest in ETFs in a few minutes. This article may contain affiliate links which means that – at zero cost to you – I might earn a commission if you sign up or buy through the affiliate link. What is an ETF? An exchange traded fund, or ETF, is an investment fund that trades on a stock exchange, much like an individual stock. Think of an ETF like a fruit basket, with each piece of fruit representing one company’s stock. ETFs can own from hundreds to thousands of individual stocks. What’s great about an ETF is, if one stock tanks, there are many more that might rise or hold steady. Whereas, if you buy one or two stocks and one of them drops in price, your whole (or half) of your investment portfolio declines in value. What’s So Great About Index ETFs Among the most popular ETFs are those that are modeled after popular stock and bond market indexes. But why is investing in index ETFs so popular? On the first day of class in my MBA Finance class, the professor asked who can beat the market by picking and choosing individual stocks (ie active investor). My hand shot up, as I had been a portfolio manager and stock picker for awhile and had performed quite well. Much to my surprise, the professor said that each year, when comparing most stock market indices with comparable actively managed funds, the index funds outperformed the actively managed funds roughly 70% of the time. Now that was several decades ago, but I’ve kept up with the research and index funds continue to outperform actively managed funds. The reason that indices usually beat actively managed funds is because their fees are lower, and they are not plagued by human emotions of fear and greed. It’s tough for a fund which charges a 1.0% management fee to outperform an index fund with a 0.03% management fee. And, for those funds that do outperform the indexes one year, it’s unlikely that they will repeat their outperformance in successive years.