Typically I will just reinvest dividends in the same ETF if I feel that it is still the right investment for the phase of the business cycle at that time.
Occasionally an individual stock might be more attractive to me at that particular moment and I’ll sweep all my available cash into that, but that’s pretty rare. The vast majority of my investments are in index funds.
If you do not mind me asking, TS Paul, which company do you normally use to trade ETFs? I am getting a little overwhelmed at all the options and just trying to find one that does not cost much given I know the ETFs I’d like to trade.
I almost exclusively use Vanguard because of their very low fees (although a few other companies have finally started to come down to match Vanguard).
The only exception is when there is a sector which I am interested in for which Vanguard does not have a fund. Right now, for example, I have some money in WMCR which tracks the Wilshire Micro Cap index.