Markus Andrews

Consumers are on track to set a spending record this month, according to forecasts.
Already, 36% of Americans went into debt this season, one recent report found.
Leaning on credit cards to purchase gifts will come at a high cost if those balances aren’t paid off quickly, experts say.

A woman shops at a Target store in Chicago on Nov. 26, 2024.
Kamil Krzaczynski | AFP | Getty Images

Heading into the holidays, many Americans were already saddled with record-breaking credit card debt. And yet, consumer spending is set to reach a fresh high this season. 
The National Retail Federation reported last week that spending between Nov. 1 and Dec. 31 is “clearly on track” to reach a record, between $979.5 billion and $989 billion.

“Job and wage gains, modest inflation and a heathy balance sheet have led to solid holiday spending,” the NRF’s chief economist, Jack Kleinhenz, said in a statement.
But other reports show that many shoppers are increasingly leaning on credit cards to manage their holiday purchases.
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To that point, 36% of consumers have taken on debt this season, a recent report by LendingTree found. And those who dipped into the red racked up an average of $1,181, up from $1,028 in 2023, according to the survey of more than 2,000 adults.
“No one should be surprised that so many Americans took on debt this holiday season. Prices are still really high and that means that lots of Americans simply didn’t have any choice,” said Matt Schulz, LendingTree’s chief credit analyst.

“Inflation is still a big deal in this country, and it’s having a huge impact on people’s finances, including their holiday spending,” he said.

Credit card debt is at an all-time high

Heading into the peak holiday shopping season, credit card balances were already 8.1% higher than a year ago, according to the Federal Reserve Bank of New York’s report on household debt.
Further, 28% of credit card users had not paid off the gifts they bought last year, according to another holiday spending report by NerdWallet, which polled more than 1,700 adults in September.

In some cases, Americans’ willingness to spend is a sign of confidence, Schulz noted. “Some surely took on debt because they didn’t have any other choice, while others did so because they wanted to splurge a bit and weren’t concerned about paying a little extra interest in order to get what they or their loved one really wanted.”
However, credit cards continue to be one of the most expensive ways to borrow money. The average credit card rate is currently more than 20% — near an all-time high. Some retail card APRs are even higher.

The problem with credit cards

Of those with debt, 21% expect it’ll take five months or longer to pay it off, LendingTree also found. At that rate, sky-high interest charges will exact a heavy toll, according to Schulz.
“That means less money to put towards other big goals for the new year, such as growing an emergency fund or saving for college,” he said. “In more extreme cases, it may mean you’re less able to pay essential bills or keep food on the table. In either case, it’s a big deal.”

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This holiday season, 36% of Americans took on debt, with average balances of $1,181, according to LendingTree.
Less than half of the people who took on debt expected to do so.
To pay down those balances as quickly as possible, these expert tips can help.

Manonallard | E+ | Getty Images

Many Americans are capping off the holidays with new debt balances.
This season, 36% of American consumers took on holiday debt, according to a new survey from LendingTree.

Those who racked up balances this season took on an average of $1,181 in debt, up from $1,028 in 2023. However, that is still down from $1,549 in 2022, LendingTree found.
Less than half — 44% — of the people who took on debt expected to acquire those balances, a sign that this holiday season is still financially challenging for many people, according to Matt Schulz, chief credit analyst at LendingTree.
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Higher prices caused by inflation remain an issue for many individuals and families this holiday season, he said.
“Some of it is people just wanting to wrap up what’s been a difficult year by spreading a little joy, and maybe they ended up taking on a little bit of extra debt to do so,” Schulz said.

Those most likely to take on debt this season include parents of young children, with 48%; millennials ages 28 to 43, with 42%; and individuals who earn $30,000 to $49,999, with 39%, according to LendingTree.
Consumers who went into debt over the holidays run the risk of still carrying those balances when next year’s holiday season comes around. Almost half of Americans still have debt from last year’s holidays, WalletHub recently found.
Meanwhile, paying down debt is a top financial resolution for 2025, according to a recent Bankrate survey.
For those who want to get out of debt, it helps to get started as soon as possible, Schulz said.
Successfully knocking off those balances has its own reward in the way of freedom, said Laura Mattia, a certified financial planner and senior vice president at Wealth Enhancement Group in Sarasota, Florida, who works with clients at all levels of wealth.
“People love to be debt free,” Mattia said. “The idea of not owing anybody any money is extremely comforting.”

Negotiate your interest rates

For those who took on holiday debt, 42% said they are paying interest rates of 20% or higher, typically through credit cards or store cards, LendingTree found.
The good news is that it’s possible to get better interest rates — and therefore lower the total amount it takes to pay off your debt — by pursuing either a 0% balance transfer credit card or a debt consolidation loan.
“There’s really no better weapon against credit card debt than a 0% balance transfer credit card,” Schulz said.
Most offers provide either 12 or 15 months without accruing interest on the transferred balance, he said. However, a fee for transferring the balance may apply.

Pick a debt paydown strategy you can stick with

Those people in debt may want to pick from different strategies to tackle their balances.
That includes the avalanche method — which prioritizes high interest rate debts first — or the snowball method – which puts the smallest balances first.
“What really matters more is finding the one that works best for you and that will keep you motivated,” Schulz said.
Mattia said she often advises clients to start with the smallest balances first, so they immediately feel their situation improving.
“What deters people the most is when they feel like they’re not making progress and they give up,” Mattia said.

Try to increase your savings

While paying down debt balances may be the primary goal, it also helps to set aside some cash for emergencies.
That way, when an unexpected expense comes up — or next holiday season rolls around — you may not have to lean quite so much on credit cards, Schulz said.
“One of the best ways to break out of the cycle of debt that so many people find themselves in is to save while you’re paying down your debts,” Schulz said.
Still, it’s important to keep in mind that the best interest rates available on savings are around 5%, while credit cards are charging north of 20% and prioritize accordingly, Mattia said.

Celebrate small wins

In the aftermath of the holidays, give yourself grace if you spent more than you intended, said CFP Jesse Sell, managing principal at Prevail Financial Partners in Stillwater, Minnesota.
“It’s not terribly uncommon to kind of let otherwise good discipline go for a few weeks over the holidays,” Sell said.
As you work to pay down your overall debt, it helps to break it down into smaller goals that you can celebrate along the way, he said.
Once you hit a smaller milestone, celebrate that victory with a small reward.
Admittedly, paying down debt is not really fun, Sell said.
“Try to find ways to take some positives out of it and keep the momentum and focus going,” Sell said.   More

Retail traders sent almost $30 billion into Nvidia shares this year on balance, according to Vanda Research.
It’s the latest honor for the megacap tech stock, which has shown leadership within artificial intelligence that has dazzled both Wall Street and Main Street.
Net inflows for Nvidia have seen a nearly nine-fold jump from 2021, Vanda data shows.

Jensen Huang, CEO of Nvidia, arrives for the Inaugural AI Insight Forum in the Russell Building on Capitol Hill on Sept. 13, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

As Michael MacGillivray saw artificial intelligence becoming more ubiquitous in everyday life, the 25-year-old wanted his investments to reflect that. It didn’t take long to figure out how he wanted to play the trend.
“Whenever you look at AI, it’s like, all the roads lead to Nvidia,” said MacGillivray, who’s spent thousands of dollars on shares this year from his home in Michigan. “It definitely was a great investment.”

MacGillivray’s purchases have contributed to the nearly $30 billion poured into Nvidia on balance by everyday investors this year, according to data from Vanda Research. That has made it the most-bought equity by retail traders on net in 2024, as of Dec. 17.
Nvidia has seen almost double the amount of net inflows from this group compared with the SPDR S&P 500 ETF Trust (SPY), which tracks the broad benchmark for the U.S. stock market. It is also on pace to dethrone Tesla, the retail investor favorite that earned the most-bought title in 2023. (The firm calculates net flows for each security by subtracting its total outflows from inflows.)
“Nvidia turned out to be the one stock that kind of stole the show from Tesla because of impressive price gains,” said Marco Iachini, senior vice president at Vanda. “The performance speaks for itself.”

‘Up and up and up’

It’s the latest feather in the cap for Nvidia. The AI titan has enamored investors big and small for more than a year. The chipmaker gained admission to the highly regarded Dow Jones Industrial Average last month and is, by and far, the 30-stock index’s best performer of 2024.
Despite rocky trading in December, the “Magnificent Seven” stock is tracking to finish 2024 higher by more than 180%. That surge has propelled the stock into an elite group of companies with market caps that exceed $3 trillion. Nvidia is now the second-most valuable company in the U.S.

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Nvidia, year to date

Naturally, this push into Nvidia shares has resulted in the stock playing a larger role in the average investor’s holdings. Vanda data shows Nvidia has a weight of more than 10% in the typical mom-and-pop trader’s portfolio, up from just 5.5% at the start of 2024. It’s now the second largest holding of the average retail investor, sitting marginally behind Tesla.
Additionally, Nvidia’s retail inflows on net in 2024 are more than 885% larger than the amount seen just three years prior.
“Nvidia really stands out in terms of how quickly retail investors became such a big part of the ownership stake,” said Gil Luria, head of technology research at D.A. Davidson, an investment bank. “The ascent was remarkable.”
One of those individual stockholders is Genevieve Khoury, a social media marketer. She first began buying shares in 2022 at the recommendation of her dad, who works in the technology sector. Khoury plans to sit on her shares until she can cash in the nest egg for a down payment on a home or other significant purchase.
“It kept going up and up and up,” said the Los Angeles-area resident. “I’m just holding it.”

‘Jaw dropping’

Inflows tended to spike this year around Nvidia’s earnings reports, according to Vanda’s Iachini. Retail investors also bought in during an early August dip, which coincided with a broader market sell-off.
To be sure, the stock has seen inflows cool to an extent as it lost some steam. D.A. Davidson’s Luria noted that shares were more expensive six months ago than in recent sessions.
Even as Nvidia continued beating Wall Street expectations for earnings, it wasn’t exceeding estimates by enough to continue the stock’s rapid price growth, Luria said. Now, he said the stock has come to more “balanced” and “reasonable” levels.
Despite this recent volatility, individual investors such as Prajeet Tripathy remain optimistic over the company’s leadership within AI and focus on innovation. “I think that it’s only going to keep rising exponentially,” said Tripathy, a recent college graduate.

Though investing is largely a digital activity, market participants’ love for Nvidia has spilled into the real world. Several gathered in New York City in late August for a well-documented watch party centered around Nvidia’s earnings report. This event came within months of the stock’s 10-to-1split, a move that’s typically done to incentivize retail investors.
While Nvidia’s retail ownership is substantial, this factor hasn’t pushed the price-to-earnings multiple higher in the same way that it has for Tesla and Palantir, Luria said. Still, Morningstar equity strategist Brian Colello said Nvidia has “fairly significant” volatility for a stock of its size, which can underscore the role retail traders can play in driving share prices.
“It’s jaw dropping at times that such a large company can have such a big move in the stock price on any given day,” Colello said.

What retail investors want next

2024 marks the second straight year that a single stock has eclipsed the SPDR S&P 500 ETF Trust in net flows. However, sizable inflows to the ETF can assuage any concerns that investors are forgoing broad index funds deemed safe investments, according to Iachini. The past two years of high inflows into megcap tech names can instead reflect traders chasing the ongoing bull market, Iachini said.
Notwithstanding strong returns, Iachini said, Nvidia can be a surprising pick for the typical at-home investor. Despite Nvidia CEO Jensen Huang’s signature leather jacket, the company lacks a “God-like” personality that can garner retail investor attention, Iachini said. For an example, he pointed to Tesla CEO Elon Musk, who made waves this year for his public backing of President-elect Donald Trump during the campaign.

Alex Karp, CEO of Palantir Technologies, poses beside the company’s logo ahead of an interview with Reuters in the Alpine resort of Davos, Switzerland, on May 23, 2022.
Arnd Wiegmann | Reuters

Looking ahead, Palantir has gained traction among the retail crowd during the fourth quarter and could be a favorite in the new year, Iachini said. The software stock has been the ninth most-bought security on balance in 2024, beating Amazon, Alphabet and Microsoft, per Vanda data.
Palantir CEO Alex Karp thanked small-scale investors during a video posted Sunday that was set against a snow-covered backdrop. “Exceedingly grateful to all of you individual investors who took the time and opportunity, and had the courage to look past conventional, rusty, crusty platitudes,” Karp said in the clip, while sporting reflective goggles and gripping ski poles.
Fittingly enough, Palantir was one recent pickup from Khoury, the social media marketer in California, on a friend’s advice. Khoury is hopeful for a Nvidia-like run, so she can retain bragging rights with acquaintances who believe they know more about investing than her. It’s going well so far: The stock has skyrocketed close to 380% in 2024, making it the best performer in the S&P 500 year-to-date.
“Multiple times in college, people would try and talk to me about it like I didn’t know what I was talking about,” said Khoury, who graduated this year with a degree in finance. “I’m like, sure, yeah, I don’t know what I’m talking about, but I do have Nvidia.”
“Probably,” she said, “my portfolio looks better than yours.”

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After this season’s peak holiday shopping days, retailers expect their return rate to be 17% higher, on average, than usual.
By the end of 2024, returns are expected to total $890 billion.
The growing amount of returned merchandise is a major problem for retailers, and comes at a high environmental cost.

After a strong start to the holiday season, consumer spending is on track to reach record levels this year. But many of those purchases will soon be returned.
December’s peak shopping days are closely followed by the busiest month for sending items back, which experts dub “Returnuary.”

This year, returns are expected to amount to 17% of all merchandise sales, totaling $890 billion in returned goods, according to a recent report by the National Retail Federation — up from a return rate of about 15% of total U.S. retail sales, or $743 billion in returned goods, in 2023.
Even though returns happen throughout the year, they are much more prevalent during the holiday season, the NRF also found. As shopping reaches a peak, retailers expect their return rate for the holidays to be 17% higher, on average, than usual.
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“Ideally, I hope there is a world in which you can reduce the percent of returns,” said Amena Ali, CEO of returns solution company Optoro, but “the problem is not going to abate any time soon.”

How returns became an $890 billion problem

With the explosion of online shopping during and since the pandemic, customers got increasingly comfortable with their buying and returning habits and more shoppers began ordering products they never intended to keep.

Nearly two-thirds of consumers now buy multiple sizes or colors, some of which they then send back, a practice known as “bracketing,” according to Happy Returns.
Even more — 69% — of shoppers admit to “wardrobing,” or buying an item for a specific event and returning it afterward, a separate report by Optoro found. That’s a 39% increase from 2023.
Largely because of these types of behaviors, 46% of consumers said they are returning goods multiple times a month — a 29% jump from last year, according to Optoro.
All of that back-and-forth comes at a hefty price.
“With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics,” David Sobie, Happy Returns’ co-founder and CEO, said in a statement.

What happens to returned goods

Processing a return costs retailers an average of 30% of an item’s original price, Optoro found. But returns aren’t just a problem for retailers’ bottom line.
Often returns do not end up back on the shelf, and that also causes issues for retailers struggling to enhance sustainability, according to Spencer Kieboom, founder and CEO of Pollen Returns, a return management company. 
Sending products back to be repackaged, restocked and resold — sometimes overseas — generates even more carbon emissions, assuming they can be put back in circulation.
In some cases, returned goods are sent straight to landfills, and only 54% of all packaging was recycled in 2018, the most recent data available, according to the U.S. Environmental Protection Agency.
Returns in 2023 created 8.4 billion pounds of landfill waste, according to Optoro.
That presents a major challenge for retailers, not only in terms of the lost revenue, but also in terms of the environmental impact of managing those returns, said Rachel Delacour, co-founder and CEO of Sweep, a sustainability data management firm. “At the end of the day, being sustainable is a business strategy.”

To that end, companies are doing what they can to keep returns in check.
In 2023, 81% of U.S. retailers rolled out stricter return policies, including shortening the return window and charging a return or restocking fee, according to another report from Happy Returns.
While restocking fees and shipping charges may help curb the amount of inventory that is sent back, retailers also said that improving the returns experience was a key goal for 2025.
Now 33% of retailers, including Amazon and Target, are allowing their customers to simply “keep it,” offering a refund without taking the product back.

For shoppers, return policies are key

Increasingly, return policies and expectations are an important predictor of consumer behavior, according to Happy Returns’ Sobie, particularly for Generation Z and millennials.
“Return policies are no longer just a post-purchase consideration — they’re shaping how younger generations shop from the start,” Sobie said.
Three-quarters, or 76%, of shoppers consider free returns a key factor in deciding where to spend their money, and 67% say a negative return experience would discourage them from shopping with a retailer again, the NRF found.
A survey of 1,500 adults by GoDaddy found that 77% of shoppers check the return policy before making a purchase.
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The Biden administration has withdrawn two major plans to deliver student loan forgiveness to millions of Americans.
Here’s what borrowers should know.

U.S. President Joe Biden delivers remarks during the Tribal Nations Summit at the Department of the Interior in Washington, D.C., U.S., December 9, 2024. 
Elizabeth Frantz | Reuters

The Biden administration has withdrawn two major plans to deliver student loan forgiveness.
The proposed regulations would have allowed the secretary of the U.S. Department of Education to cancel student loans for several groups of borrowers, including those who had been in repayment for decades and others experiencing financial hardship.

The combined policies could have reduced or eliminated the education debts of millions of Americans.
The Education Department posted notices in the Federal Register on Friday that it was withdrawing the plans, weeks before President-elect Donald Trump enters the White House.
The department wrote that it was terminating the rulemaking proceeding due to “operational challenges in implementing the proposals.” It said it would “commit its limited operational resources” in these final weeks of the administration “to helping at-risk borrowers return to repayment successfully.”
The Education Department did not immediately respond to a request for comment.
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“The Biden administration knew that the proposals for broad student loan forgiveness would have been thwarted by the Trump administration,” said higher education expert Mark Kantrowitz.
Trump is a vocal critic of student loan forgiveness, and on the campaign trail he called President Joe Biden’s efforts “vile” and “not even legal.”
Biden’s latest plans became known as a kind of “Plan B” after the Supreme Court in June 2023 struck down his first major effort to clear people’s student loans.
Consumer advocates expressed disappointment and concern about the reversal on debt relief.
“President Biden’s proposals would have freed millions from the crushing weight of the student debt crisis and unlocked economic mobility for millions more workers and families,” Persis Yu, deputy executive director and managing counsel of the Student Borrower Protection Center, said in a statement.

Student loan forgiveness still available

“There are so many borrowers concerned about the impact of the new administration with their student loans,” said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.
For now, the Education Department still offers a wide range of student loan forgiveness programs, including Public Service Loan Forgiveness and Teacher Loan Forgiveness, experts pointed out.
PSLF allows certain not-for-profit and government employees to have their federal student loans cleared after 10 years of on-time payments. Under TLF, those who teach full-time for five consecutive academic years in a low-income school or educational service agency can be eligible for loan forgiveness of up to $17,500.
The Biden administration announced Friday that it would forgive another $4.28 billion in student loan debt for 54,900 borrowers who work in public service through PSLF.

“Many borrowers are particularly concerned about the future of the PSLF program, which is written into law,” Rubin said. “Eliminating it would require an act of Congress.”
At Studentaid.gov, borrowers can search for more federal relief options that remain available.
Meanwhile, The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state. More

Some taxpayers can expect to get up to $1,400 payments from the IRS by late January.
A total of 1 million taxpayers will receive an estimated $2.4 billion in payments.
The money will go to individuals who still haven’t been paid the Covid-19 relief funds — more popularly known as stimulus checks — they were due.

Ryanjlane | E+ | Getty Images

The IRS plans to issue automatic “special payments” of up to $1,400 to 1 million taxpayers starting later this month, the agency announced last week.
The payments will go to individuals who did not claim the 2021 Recovery Rebate Credit on their tax returns for that year and who are eligible for the money.

The Recovery Rebate Credit is a refundable tax credit provided to individuals who did not receive one or more economic impact payments — more popularly known as stimulus checks — that were sent by the federal government in the wake of the Covid-19 pandemic.
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The maximum payment will be $1,400 per individual and will vary based on circumstances, according to the IRS. The agency will make an estimated total of about $2.4 billion in payments.
“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement. “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it.” 

No action needed for eligible taxpayers

The new payments are slated to be sent out automatically in December. In most cases, the money should arrive by late January, according to the IRS.

Eligible taxpayers can expect to receive the money either by direct deposit or a paper check in the mail. They will also receive a separate letter notifying them about the payment.

Direct deposit payments will go to taxpayers who have current bank account information on file with the IRS.
If eligible individuals have closed their bank accounts since their 2023 tax returns, payments will be reissued by the IRS through paper checks to the mailing addresses on record. Those taxpayers do not need to take action, according to the agency.

How to tell if you qualify

The payments are only going to taxpayers who qualify for the 2021 Recovery Rebate Credit — particularly individuals who filed a 2021 tax return but who did not claim the Recovery Rebate Credit even though they were eligible, either by leaving that data field blank or entering $0.
Taxpayers who haven’t filed 2021 tax returns still have a chance to claim the credit. However, they must file by April 15, 2025, to claim the credit and any other refunds they are owed.
Claiming the Recovery Rebate Credit will not count as income and interfere with eligibility for certain other federal benefits, including Supplemental Security Income, or SSI; Supplemental Nutrition Assistance Program, or SNAP; Temporary Assistance for Needy Families, or TANF; and Special Supplemental Nutrition Program for Women, Infants and Children, or WIC.
The IRS provides more information on payment eligibility and amounts on its website.

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ETF Strategist

ETF Street
ETF Strategist

The U.S. Securities and Exchange Commission approved the first bitcoin ETFs in January.
Earlier this month, the 12 spot bitcoin ETFs collectively surpassed $100 billion in assets under management, marking one of the most successful ETF launches in history.
Despite recent volatility, the price of bitcoin was still up nearly 120% year to date, as of Dec. 20, fueled in part by the pro-crypto policy proposed by President-elect Donald Trump.  
But there are strategies to consider before adding bitcoin ETFs to your portfolio.

Fernando Gutierrez-Juarez | Picture Alliance | Getty Images

It has been a banner year for spot bitcoin exchange-traded funds, with some of the biggest asset managers introducing ETFs that hold the flagship digital currency. But there are things to consider before adding these ETFs to your portfolio, experts say.  
The U.S. Securities and Exchange Commission approved the first spot bitcoin ETFs in January. Earlier this month, the 12 spot bitcoin ETFs collectively surpassed $100 billion in assets under management, marking one of the most successful ETF launches in history.

Bitcoin ETFs give investors a “traditional way to buy an untraditional asset,” said certified financial planner Douglas Boneparth, president of Bone Fide Wealth in New York.

More from ETF Strategist:

Here’s a look at other stories offering insight on ETFs for investors.

Despite recent volatility, the price of bitcoin was still up nearly 120% year to date, as of Dec. 20, fueled in part by the pro-crypto policy proposed by President-elect Donald Trump.  
There is a lot of upside potential, said Boneparth, who is also a member of CNBC’s Financial Advisor Council. But there is typically a “tremendous amount of volatility” compared to traditional asset classes.

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If you are still ready to buy bitcoin ETFs, here’s what to consider.

Advisors remain ‘cautious’ about bitcoin ETFs

“Most advisors are still relatively cautious about using these [bitcoin ETFs] with their clients,” said Amy Arnott, a portfolio strategist with Morningstar Research Services.

To that point, some 59% of financial advisors are not currently using or discussing cryptocurrency with their clients, according to a survey released in June from Cerulli Associates. The survey polled 271 advisors during the first quarter of 2024, when the price of bitcoin was lower.  

Follow a ‘rebalancing policy’

If you are eager to add bitcoin ETFs to your portfolio, Arnott suggests keeping your allocation small — around 2% to 3%, maximum — and rebalancing regularly.
Your allocation should be based on your goals, risk tolerance and timeline. Without rebalancing, a ballooning bitcoin ETF position could have a “drastic impact on the overall portfolio’s risk profile,” she said.

It’s good to rebalance on a regular schedule, quarterly at a minimum, or even monthly…

Amy Arnott
Portfolio strategist with Morningstar Research Services

You can follow a “rebalancing policy” by trimming profits whenever your bitcoin ETF allocation exceeds a predetermined percent of your portfolio, Arnott said. That requires regular monitoring.
“It’s good to rebalance on a regular schedule, quarterly at a minimum, or even monthly” for volatile assets such as bitcoin, she said.

Consider your timeline

Like other investments, it is important to consider your goals and timeline before adding bitcoin ETFs to your portfolio, Arnott said.
Similar to stocks, Morningstar’s portfolio framework recommends holding bitcoin and other cryptocurrencies for at least 10 years due to volatility, periodic drawdowns and crypto winters.
“It’s not a good place to be if you’re saving for a down payment on the house in a few years,” Arnott said. More