TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE PARADOX OF CHOICE A common activity in my household involves turning the television on, firing up one of the umpteen streaming services I am contractually obligated to, scrolling through the infinite range of entertainment offerings, begin feeling overwhelmed by the inordinate amount of choice on offer, along with strong indifference to anything offered, completed with the inability to make any decision. Then I move onto the next streaming service to go through the whole process again, and on it continues until I decide to abandon ship and switch to an altogether different activity. Fun times! Chances are you have your own experience and stories of frustration with this game of endless scrolling. In many ways, streaming services and the sharemarket are comparable when it comes to inducing feelings of being overwhelmed and an inability to make a decision. For streaming, you have a multitude of different providers who all offer essentially the same service, but with slight points of differentiation between them (the children's entertainment focus of Disney being different to the live sports action of Kayo for example). This is akin to the sectors of the sharemarket, where the same one slice of ownership in a company is offered but each company operates within different areas of our economy (a mining company like Rio Tinto being completely different to a staple retailer like Woolworths). The range of choice of companies listed on the sharemarket, currently over 2,300, is almost as overwhelming as that of your streaming service. And while algorithms exist to assist in making your next movie selection, no such luck is present for selecting your next investment. However, many brokers offer a 'filter' service whereby you can narrow down your search to those that meet certain criteria (for example, those that offer a dividend yield above 4% or only those that fall within a certain size segment of the sharemarket). One recent development in the investment world that can assist in alleviating selection pressure and feeling overwhelmed are Exchange Traded Funds (commonly referred to as ETFs). These products remove the need to pick just one company from a ginormous range and instead offer broad exposure to the "sharemarket" from one point of access, or trade. The range of ETFs offered in Australia are both as broad as can be, such as the S&P/ASX 200, or as niche and thematic as you can imagine, such as 'Artificial Intelligence Infrastructure'. So, if you suffer from the same overwhelming feelings and decision fatigue when reviewing investments as you do when choosing a movie, think of ETFs as the 'top picks today' summary and try narrowing your search to just this - and hopefully it proves not to be a dud pick! BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1, 462-464 Peel St, Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account. You are advised not to act on anything contained herein, or discussed as a consequence of the contents of this document, without receiving financial advice from a suitably qualified person such as a financial planner, lawyer or accountant. AW7447699 Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au TALKING FINANCE with Michelle Higgerson of Baiocchi Griffin Private Wealth THE PARADOX OF CHOICE A common activity in my household involves turning the television on , firing up one of the umpteen streaming services I am contractually obligated to , scrolling through the infinite range of entertainment offerings , begin feeling overwhelmed by the inordinate amount of choice on offer , along with strong indifference to anything offered , completed with the inability to make any decision . Then I move onto the next streaming service to go through the whole process again , and on it continues until I decide to abandon ship and switch to an altogether different activity . Fun times ! Chances are you have your own experience and stories of frustration with this game of endless scrolling . In many ways , streaming services and the sharemarket are comparable when it comes to inducing feelings of being overwhelmed and an inability to make a decision . For streaming , you have a multitude of different providers who all offer essentially the same service , but with slight points of differentiation between them ( the children's entertainment focus of Disney being different to the live sports action of Kayo for example ) . This is akin to the sectors of the sharemarket , where the same one slice of ownership in a company is offered but each company operates within different areas of our economy ( a mining company like Rio Tinto being completely different to a staple retailer like Woolworths ) . The range of choice of companies listed on the sharemarket , currently over 2,300 , is almost as overwhelming as that of your streaming service . And while algorithms exist to assist in making your next movie selection , no such luck is present for selecting your next investment . However , many brokers offer a ' filter ' service whereby you can narrow down your search to those that meet certain criteria ( for example , those that offer a dividend yield above 4 % or only those that fall within a certain size segment of the sharemarket ) . One recent development in the investment world that can assist in alleviating selection pressure and feeling overwhelmed are Exchange Traded Funds ( commonly referred to as ETFs ) . These products remove the need to pick just one company from a ginormous range and instead offer broad exposure to the " sharemarket " from one point of access , or trade . The range of ETFs offered in Australia are both as broad as can be , such as the S & P / ASX 200 , or as niche and thematic as you can imagine , such as ' Artificial Intelligence Infrastructure ' . So , if you suffer from the same overwhelming feelings and decision fatigue when reviewing investments as you do when choosing a movie , think of ETFs as the ' top picks today ' summary and try narrowing your search to just this - and hopefully it proves not to be a dud pick ! BAIOCCHI GRIFFIN PRIVATE WEALTH Level 1 , 462-464 Peel St , Tamworth NSW 2340 6766 9000 AFSL No 424658 This article is general in nature and does not take your individual situation into account . You are advised not to act on anything contained herein , or discussed as a consequence of the contents of this document , without receiving financial advice from a suitably qualified person such as a financial planner , lawyer or accountant . AW7447699 Follow us on Twitter @BaiocchiGriffin Find us on Facebook facebook.com/Baiocchi Griffin Private Wealth www.bgprivatewealth.com.au