Is 7 ETFs too many?

Is investing in seven ETFs considered excessive?" This question often arises among investors who are diversifying their portfolios but are also concerned about spreading their funds too thinly. On one hand, ETFs, or Exchange-Traded Funds, offer a convenient way to gain exposure to multiple assets or sectors without having to buy individual stocks. Their liquidity and cost-effectiveness are also appealing factors. However, the number of ETFs one should hold depends on various factors such as investment goals, risk tolerance, and overall portfolio composition. Too many ETFs might lead to overlap, increased management fees, and potentially diluted returns. On the other hand, a diversified portfolio with a few well-chosen ETFs can help mitigate risk and enhance returns. So, the question isn't simply about the number but also about the quality and fit of these ETFs within your overall investment strategy. It's crucial to regularly review and rebalance your portfolio, ensuring that each ETF adds value and aligns with your financial goals. In essence, it's not necessarily the quantity but the quality and strategic fit that matter most.