The Ultimate Guide to ETFs
What is an ETF? We are here to help you get started.
What is an ETF?
Imagine you’re at a buffet with every type of food imaginable. You want to try a bit of everything but don’t want to load up your plate with too much of one thing. That’s what an ETF (Exchange-Traded Fund) does for your portfolio.
An ETF is like a buffet plate of various stocks, bonds, or other assets, allowing you to sample different investments without committing all your cash to just one.
Each dish (or stock) has its unique flavour, but by sampling a bit of everything, you create a balanced, satisfying plate. With ETFs, you can enjoy a taste of many investments, reducing the risk of overloading on any one choice.
Exchange-Traded
Quick breakdown:
You can buy and sell them on the stock market, just like individual stocks.
Fund
Quick breakdown:
It’s a collection of investments pooled together, often mirroring an index like the S&P 500.
What makes ETFs so popular?
Diversification
You’re not putting all your eggs in one basket. If one stock in the ETF doesn’t perform well, others may balance it out.
Lower Fees
ETFs often have lower fees compared to non-listed funds. It’s like getting a VIP pass to the market but without the VIP price tag.
Transparency
ETFs let you see exactly what you’re investing in, making them more transparent than mutual funds.
Ease of trading
You can trade ETFs like you would a stock. Buy in the morning, sell in the afternoon—it’s that flexible.
A Look at ETF Providers
Just like how different chefs prepare dishes at a buffet, several well-known companies create and manage ETFs. Some of the biggest names in the ETF world include BlackRock’s iShares, State Street Global Advisors (SPDRs), and many others. Each provider has its own “menu” of ETFs, focusing on different investment flavours like themes, sectors, or strategies.
iShares by BlackRock
ETF Market Leader
iShares has led the ETF market for over two decades, offering expertly managed funds with strong risk oversight.
SPDRs by State Street Global Advisors
The most affordable S&P 500 ETF
SPDRs launched the first U.S.-listed ETF and have provided trusted access to diverse sectors and indices for over three decades.
VanEck
Managed in the Netherlands
VanEck is a global asset manager offering a wide range of ETFs, known for their focus on thematic, commodity, and sector-specific investment strategies.
Read this before investing in ETFs
At EliteProEdge, we’re always open and transparent about risk and reward. Investing in ETFs can be rewarding, but it does come with risks that vary depending on the specific ETF. Before you start investing, it’s important to consider several key factors. Assess your risk tolerance and choose products that align with your financial goals and level of expertise. Additionally, avoid investing money you may need in the short term or taking positions that could lead to financial strain.
Try the EliteProEdge Investment Plan for €0*
If you’d prefer a more hands-off approach, the EliteProEdge Investment Plan is your new best friend. Instead of choosing individual ETFs yourself, we do the heavy lifting for you. Our pre-defined plans are collections of ETFs and stocks designed around specific global themes such as artificial intelligence, renewable energy and much more.
*Regular Market Order sell rates apply for each position. External fees might apply.