How Not To Suck At Investing: Understanding Stocks (Part 1)

Apply what you’ve learned from this class by building a hypothetical ETF portfolio and backtesting it. Here’s how:

1. Visit this wonderful ETF screener and browse through it. Play around with the filters and parameters to find interesting ETFs;

2. Write down a list of all the ETFs that catch your eye and make you think “I should buy this”.

3. For every ETF you add to your list, write a brief sentence on why it caught your eye (e.g., “I picked XLK because I think the technology sector will outperform the broader market” or “I picked EWJ because I think Japan will overcome its demographic crisis and experience a new economic boom”);

4. Visit this neat backtesting site to see how your portfolio would have done in the past 10-20 years. Fill in the ETF tickers in the “Portfolio #1” column, then using the cog wheel select “Equal Weight” to evenly distribute your hypothetical capital across the portfolio;

5. Make a screenshot of your portfolio’s performance (like this) and upload it! Don’t forget to mention which ETFs you picked and why (steps #2 & #3).

Make sure to check out the projects of other students; you might come across some interesting ideas!