Why should you start investing by ETFs as a beginner investor?

An ETF is essentially a basket of stocks, bonds, commodities, etc. They have diversification as mutual funds and are traded like individual stocks. Thus they are one of the popular investing tools for investors.

An ETF is less risky than an individual stock or bond. If a stock losses value, your money will also loss, but if you invest in ETFs, if a stock in your ETF losses value, another stock in ETF will probably compensate it by gaining value and minimizes your losses. In short, an ETF provide you automatic diversification of your portfolio.

Investing ETFs will save your time and work since professional managers will select the stocks and bonds instead of you. Enjoy it!

Trading ETFs has lower costs than trading individual stocks and bonds. Also, they have some tax advantages.

ETFs can be traded at any time during the day like stocks. This feature mainly distinguishes them from mutual funds.

Leave a Reply

Your email address will not be published. Required fields are marked *