Exchange Traded Funds (ETFs) have been one of the buzz words in the investing world for a number of years. They’re changing the way that people invest their money, and in some ways, making it a lot easier for beginner investors to enter the market. But the question we always hear is WTF is an ETF?
We sat down with Ilan, the co-founder of BetaShares which is the largest Australian provider of ETFs, to discuss the fundamentals. ETFs are a fantastic way for you to get access to a huge variety of different companies and ‘themes’ on the stock market, both domestic and international. They also give you the opportunity to invest in commodities, such as gold and silver, or to bet against the market and profit if it goes down.
ETFs can be a little confusing as there are so many out there, and sometimes it’s hard to know what to buy. Ilan takes us through them, step by step, so by the end of this episode you’ll know everything you need to get investing!
In this episode you will learn:
- What an ETF actually is
- The different types of ETFs – active ETFs, passive ETFs, different asset classes than can be accessed via an ETF
- The difference between and ETF and an Index Fund and an Listed Investment Company (LIC)
- The 3 main benefits ETFs provide you
- Why ETFs have shaped the investing landscape since the Global Financial Crisis (GFC)
- The risks associated with investing in ETFs
- How to use ETFs in your portfolio
Stocks and resources discussed:
- Australian 200 ETF (ASX: A200)
- NASDAQ 100 ETF (ASX: NDQ)
- Global Sustainability Leaders ETF (ASX: ETHI)
- Australian Sustainability Leaders ETF (ASX: FAIR)
- Global Cybersecurity ETF (ASX: HACK)
- US Equities Strong Bear Hedge Fund – Currency Hedge (ASX : BBUS)
- Australian Equities Bear Hedge Fund (ASX: BEAR)
- Gold Bullion ETF – Currency Hedged (ASX: QAU)