Dear clients,
We recently introduced a new category of instruments — ETFs, and now we’d like to provide some more insight into what makes them attractive in general and for beginners in particular. Is it really possible to cover the entire market with just one stock?
Let’s find out.
As we know, ETF or Exchange Trading Funds is an exchange-traded investment fund that includes a large package of assets. It is formed on a specific basis, whether it is the field of activity of companies or their geographical location. An ETF is well suited for those who want to balance their holdings with minimal effort.
So what are the main benefits of ETFs?
1. Diversification
One ETF can include hundreds of instruments, which allows you to invest in many industries at once.
2. Availability
Assembling your own portfolio is complicated and costly task, especially for new traders. The ETF does all the heavy lifting.
3. Economy
Investing in an ETF is much cheaper than the same package of assets separately. So traders with small capital have the opportunity to participate in bigger trades.
4. Low risks
The fall of several stocks is balanced by the rise of others.
5. Transparency
The composition of the portfolio and its price fluctuations are tracked in real time.
6. Relevance
ETFs are more dynamic than traditional indices, which allows them to adapt to the market situation.
Now we have briefly covered how the ETF works. Featured ETFs can be found in the CFD Specifications.
Have a nice trade!
