Holding a variety of assets can help diversify the risk of a portfolio. Where to start? One solution is ETFs. Buying just one ETF can give you a stake in hundreds of stocks or bonds.
- An exchange-traded fund is a financial tool to buy baskets of stocks containing shares of hundreds or thousands of companies with a single purchase.
- ETFs are publicly traded securities, like stocks. During trading, they can be bought or sold at any time during the trading day.
- ETFs are an optimal choice for beginner investors because they are usually low-cost and help provide instant diversification to a portfolio.
- Start to trade now on LYOTRADE: com
You can now buy ETFs and diversify your portfolio on LYOTRADE. An international ETF, for example, could broaden your portfolio with stock holdings from around the world, while a bond ETF might span much of the investment-grade market.
What is the Difference Between ETFs and Stocks?
ETFs are traded in a similar way to shares, but unlike individual stocks, they track the performance of the underlying asset or a basket of assets. They can track the performance of a selection of markets, including corporate stocks, indices and commodities, but the investor does not own the underlying assets.
What Are the Benefits of ETFs?
It is easy to buy or sell new shares without running the risk of seeing their value drop.
Access small quantities of major market indices.
Know everything about the investment from currency exposure to creditworthiness, with full portfolios disclosed on free, public websites every single day of the year.
Because they’re highly diversified, ETFs are generally considered safe long-term investments with historically dependable returns.
ETFs are simple, transparent, and low cost. They offer diversity and flexibility in building an investment portfolio. And important, ETFs tend to be less volatile than individual stocks, meaning the invested funds won’t swing in value as much.
How to Get Started
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