{"id":354070,"date":"2022-06-26T14:59:27","date_gmt":"2022-06-26T14:59:27","guid":{"rendered":"https:\/\/www.ziet.co\/v2024\/?p=354070"},"modified":"2024-11-07T10:47:51","modified_gmt":"2024-11-07T02:47:51","slug":"etf-investing-a-beginners-guide","status":"publish","type":"post","link":"https:\/\/www.ziet.co\/v2024\/investing\/etf-investing-a-beginners-guide\/","title":{"rendered":"ETF Investing – A Beginner\u2019s Guide"},"content":{"rendered":"\n

<\/path><\/svg><\/span><\/span>Estimated reading time: <\/span>11<\/span> minutes<\/span><\/p>\n\n\n

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Exchange-Traded Funds (ETFs) are an amazing way to invest regardless if you are a beginner or a veteran. After analyzing ETFs for a few years now, I thought I\u2019d make a blog post about everything you need to know when it comes to ETF investing!<\/p>\n\n\n\n

Maybe you\u2019re trying to figure out the ins-and-outs of robo-advisors who usually invest in a wide array of ETFs, or maybe you just want to learn and have no idea where to begin. Fret not, in this blog post, you\u2019ll learn everything you need to know and maybe more!<\/p>\n\n\n\n

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TABLE OF CONTENTS<\/strong><\/h3>\n\n\n\n
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  1. What is an ETF?<\/a><\/strong><\/li>\n\n\n\n
  2. ETF vs Mutual Fund\/Unit Trust<\/a><\/strong><\/li>\n\n\n\n
  3. Main Types of ETFs<\/a><\/strong><\/li>\n\n\n\n
  4. Active vs Passive ETFs<\/a><\/strong><\/li>\n\n\n\n
  5. How do you find an ETF that is suitable?<\/a><\/strong><\/li>\n\n\n\n
  6. How do I break down ETF Fact Sheets?<\/a><\/strong><\/li>\n\n\n\n
  7. Conclusion<\/a><\/strong><\/li>\n<\/ol>\n<\/div>\n\n\n\n
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    1. What is an ETF?<\/strong><\/h3>\n\n\n\n
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    ETF Investment Illustration<\/em><\/p>\n\n\n\n

    To put it simply, an Exchange-Traded Fund (ETF)<\/a> is a diversified investment tool (a basket of stocks) to invest in a large number of companies easily. Buying or selling an ETF is similar to buying or selling a stock – but with lower volatility, that comes with a lower reward.<\/p>\n\n\n\n

    An ETF is effectively a hybrid between a stock and a fund because you can trade the fund on a public exchange. To make it better, they are typically cheaper because you don\u2019t have to buy any one stock in order to own multiple companies!<\/p>\n\n\n\n

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    2. ETF vs Mutual Fund\/Unit Trust<\/strong><\/h3>\n\n\n\n
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    ETF vs Other Assets<\/em><\/p>\n\n\n\n

    On the flipside, if you want to diversify into any particular industry or country, you can pay a fund, such as a mutual fund or a unit trust that will help you spread your money across relevant asset classes but it might come with a hefty price of around 2-5% p.a..<\/p>\n\n\n\n

    These types of funds are usually not publicly-listed; therefore, information regarding them could be considered scarce. At this point, it\u2019s best to do some due-diligence before you decide to explore more into this.<\/p>\n\n\n\n

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    3. Main Types of ETFs<\/strong><\/h3>\n\n\n\n

    You might be overwhelmed, at this point, as there are thousands of ETFs out there, and they can be categorized into these 5 main types:<\/p>\n\n\n\n