What you need to know about safe investments

The first part of this article is going to be a little technical, but the next two sections are going to have a lot of real-world applications. 

I’m going to start by looking at some basic things about safe investment ideas, which can be quite confusing. 

There’s an entire sub-genre of safe investments that you probably don’t even know exists. 

The first is the safe investment idea of a dividend-paying mutual fund. 

Dividend-paying funds are the investment that the market’s been waiting for: the safe investments are stocks that earn dividends, which pay out to investors based on a set amount of money held by shareholders. 

And for the most part, they’re great. 

If you like dividends, then you’ll enjoy dividend-producing stocks. 

But if you like risk, you’ll also like dividend-reward stocks.

Dividends are generally the best investment because they pay out fairly quickly, which means that the return on your money is low, even if the stock is profitable. 

(You can see this in the graph below.) 

And, as I mentioned earlier, there are lots of other safe investments you could be looking at. 

These include: Diverting stocks (you’ll probably never sell these stocks, because they’re often very profitable) Sector ETFs (they typically have low volatility, and don’t need to be diversified to reach their full potential) Bond ETFs Investment Grade ETFsYou can use the information above to help you decide which of these safe investments is right for you. 

For example, if you’re an investor who likes to diversify their portfolio, then it’s probably best to use a fund that pays dividends. 

However, if your investment is based on dividends, you might want to look into investing in a fund with lower volatility. 

In short, you want to make sure you understand how safe investing is before investing in any safe investments. 

As a result, I’m going be giving you a detailed look at the different safe investments, and I’ll be talking about what they are and what they can do for you and your portfolio. 


Vanguard Total Return Fund This is the easiest of the safe funds, because it has low volatility and doesn’t have to be held to pay dividends.

(Vanguard has a nice tool called RiskMetric to help investors make better investments.) 


Vanguard Vanguard Total return fund.

Vanguard has been around for a while now, but it’s a new fund for 2017. 

It’s not an investment manager. 

Instead, it’s an index fund, which is a type of investment. 

Basically, you hold an index portfolio, and your returns depend on how much you put into the fund, as well as on how you diversify your investments.

 Vanguard does a nice job of making it clear which investments have high returns, and which investments don’t. 

You can choose to invest in stocks that have low or high returns. 

Most people are familiar with a fund like the SPDR S&P 500 index fund.

If you invest in a stock that’s growing in price, you can get a great return. 

On the other hand, if a stock is losing money, you’re likely to get a less-than-stellar return.

Vanguard’s Total Return fund is similar to a stock index, but instead of a fixed amount of capital, it lets you put in money at any time. 

So, instead of spending your money in one big fund, you have a number of small, diversified funds that you can invest in at any given time.

(This makes the Total Return ETF a better option for diversifying your portfolio than a typical stock index fund.) 


Vanguard SPDR Total return index fundThis is the index fund of the SPDr.

Basically, it has an index that tracks a specific stock, and each day you put money into the index, you get an amount of equity in the fund.

(That’s called your “weighted average cost of capital” (or WACC), which is the ratio of the cost of investing your money into that fund to the amount of your investment.

(You can read more about weighted average cost-of-capital here .) 

Vanceys Total Return Index is another good option if you don’t want to put in any cash into the funds. 

VSCO Vanguard Total returns ETF has an average cost to capital ratio of around 1.5, which should make it a good choice if you want low volatility.

(It’s similar to the Vanguard SPDRs Total returns fund.)


Vanguard International ETFThis is another high-performance ETF. 

This ETF is based in the United Kingdom, and it’s managed by Vanguard’s investment arm, the International Funds Group. 

Its performance is closely tracked by other ETFs, which makes it a