ETF EDUCATION CENTRE

WHAT IS AN ETF?

ETFs trade like a stock and diversify like a mutual fund.

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DIVERSIFY YOUR PORTFOLIOS WITH ETFs

Not all ETFs are created equal. Build diversified portfolios with iShares ETFs that help investors access asset classes from equities and bonds, to commodities and digital assets.

ETFs are one of the world’s most innovative financial products and can help investors build portfolios with better diversification, build portfolios with better flexibility. But not all ETFs are equal. As one of the leaders in the ETF market for more than two decades (Source: BlackRock; as of 31 December 2024), iShares lives by one mission. We are champions of investor progress for millions by relentlessly pursuing better ways to invest. iShares ETFs deliver access to diverse global investment opportunities through a range of high quality ETFs that perform as designed.

 

Since 1996, iShares has always been pioneering innovative trends in the ETF industry. iShares offers more than 1000 ETFs across 16 domiciles (Source: iShares Global Business Intelligence; data as of 31 December 2024.). And is now one of the leading ETF issuers in the world with US$4.2 trillion AUM, with 30+ years of investment experience in global markets, with 20+ years investment experience in Asian markets (Source: BlackRock; as of 31 December 2024.).

 

Helping investors achieve their financial goals.

 

iShares by BlackRock

WHAT IS AN ETF?

Exchange-traded-funds, or ETFs, are like managed funds in that they invest in a basket of securities, such as stocks, bonds, or other asset classes. But unlike managed funds and similar to a stock, ETFs can be traded whenever the markets are open.

By combining the diversification benefits of managed funds with the ease of stock trading, ETFs can provide investors with a simple way to access the world’s financial markets. Whether you’re an individual investor, or a seasoned financial professional, ETFs can be a suitable investment option to help meet your goals.

ETFs VS INDEX FUNDS VS STOCKS

Managed funds (also known as mutual funds) are investment products that pool together money from a range of investors. A fund manager then actively manages and invests this money into a basket of different assets and securities – often stocks. You pay the manager in the hope they drive better performance than the market performance.

What is an ETF? ETFs are a diversified, low-cost way to invest. An ETF can be bought and sold whenever the market is open (like a stock). An ETF is typically a collection of stocks or bonds and professionally managed (like a managed fund).

ETFs invest in a basket of securities, such as stocks, bonds, and commodities, just like managed funds. Unlike managed funds, ETFs can be traded whenever the markets are open, just like individual stocks. In addition, ETFs typically have lower fees than managed funds, helping you keep more of what you earn.

HOW TO INVEST IN ETFs

There are a variety of ways to invest in ETFs, which largely comes down to personal preference. For hands-on investors, investing in ETFs is but a few clicks away via your online broker. For other investors, they may want to consult a financial adviser to help them construct a diversified portfolio using ETFs managed by investment professionals.

For investors wanting to be more hands-on with their investments, below are some considerations when selecting an ETF:

Everyone's investment needs are unique. Whether your goal is maximising growth, generating income, managing risk, or other objectives, you need to create a plan — and stick with it.

After setting goals and comparing ETFs, go deeper to learn more about how each ETF measures up on key metrics, including performance, risk, cost, and core holdings. Explore Singapore-listed iShares ETFs.

ETFs are funds that trade on an exchange like a stock. They are a relatively easy to use, low-cost way to invest money and are widely available on most online brokerage accounts and through financial advisers, as compared to mutual funds.