What is an ETF?

What is an ETF?
 
At Stockspot we believe Exchange Traded Funds (ETFs) are the building blocks for the best investment portfolios.

ETFs have been around for roughly 20 years and are fast becoming the most popular investment option. Each year more money leaves managed funds and goes into ETFs. This is because they can easily be traded on the stock exchange, they’re low cost and offer instant diversification.

ETFs: Back to basics

 

What’s the difference between investing in ETFs and buying shares?

ETFs let you invest in a broad range of assets without needing to buy and manage each investment individually. This is because ETFs track entire ‘market indices’ like Australian shares and global shares. Diversifying across many investments helps to reduce your risk compared to buying individual shares. ETFs also have the same benefits of shares such as dividends and the ability to sell whenever you want.

There are hundreds of different ETFs available for Australian investors to chose from. We compare all of the options in our annual ETF report.

What does Stockspot do for me?

We build and manage a portfolio of ETFs tailored for your personal goals. This means your money is diversified across many different assets, sectors and countries which helps to reduce the risk in your portfolio as it grows.

Stockspot also manages the rebalancing and tax reporting for your portfolio which saves you from having to watch markets, calculate your tax or pay for brokerage.

 

Grow your savings the smart way

Stockspot is Australia’s largest digital investment adviser. We can help you build and manage a personalised portfolio tailored to your financial situation and your goals. It’s professional investment advice without the high costs of seeing a human adviser.

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Chris Brycki

Stockspot Founder and CEO