Getting started with ETF investing
Whether you’re just getting started with ETFs or exploring how these fit into your current portfolio, ETFs can provide hundreds of choices designed to help you build an investment portfolio that works for you. We’ve worked with iShares by BlackRock, a leading ETF provider, to create guides to help you get started.
What is an ETF?
Exchange-traded funds (ETFs) are pooled investment funds that trade on stock exchanges. Just like stocks, they can be bought and sold throughout the day. ETFs are designed to track an index (such as the S&P 500 or FTSE 100) or a specific sector (health care, property or finance). An ETF’s value is determined by the underlying assets it holds.
ETFs hold portfolios that include many individual securities – such as stocks and bonds – allowing investors to own a diversified portfolio without buying each asset individually. By combining multiple holdings in a single wrapper, ETFs offer investors one-click diversification benefits and wide market access. A diversified portfolio may help to lower risk.