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Understanding ETFs

Welcome to our ETF educational page. Here we will try to answer some of your questions regarding ETFs and hopefully identify some good approaches to investing in the ETF space.

We are often asked the following questions:

"ETF vs index fund" - what's the difference?

Not much! ETFs are generally based on an index that has been developed, often by a third party, and the ETF's managers work to make the ETF a good representation of the index by buying all the same stocks listed in the index. Following an index rather than actively picking stocks is known as passive investing.

"ETF vs mutual fund" - how are they different?

"What are Benefits and Drawbacks of ETFs?"

Exchange-traded funds (ETFs) offer a number of benefits compared to other investment vehicles. Some of the advantages of ETFs include:

However, there are also some drawbacks to investing in ETFs, including:

Overall, ETFs can be a useful tool for investors looking to diversify their portfolios and access a wide range of assets. However, like any investment, they come with their own set of risks and drawbacks, and it's important for investors to carefully consider these before making any decisions.

"What kinds of ETFs are out there?"

These days there are ETFS targeting almost every imaginable investment need.

"What are the best ETFs?"

It's difficult to say which ETFs are the "best" since the best option for one investor may not be the best for another. The best ETF for you will depend on your investment goals, risk tolerance, and other factors. Here are some things to consider:

Finally, it's important to remember that no investment is risk-free. Even the "best" ETFs can lose money, so it's important to carefully evaluate the risks and potential rewards before investing your money.

"How to pick ETFs?"

There are a few key steps you can follow to help you pick the right ETFs for your investment portfolio. Here are some tips:

  1. Identify your investment goals and risk tolerance. Before you start looking at ETFs, it's important to have a clear idea of what you want to achieve with your investments, and how much risk you're comfortable taking on. This will help you narrow down your options and focus on ETFs that align with your goals.
  2. Research different ETFs. Once you know what you're looking for, you can start researching different ETFs to see which ones might be a good fit. You can look at factors like performance, fees, holdings, and other information to help you compare different ETFs.
  3. Consider your overall investment portfolio. It's important to remember that ETFs are only one piece of your overall investment strategy. Make sure to consider how the ETFs you're considering will fit in with your other investments, and whether they will help you achieve a well-balanced portfolio.
  4. Diversify your investments. One of the key benefits of ETFs is that they allow you to invest in a wide range of assets, which can help you diversify your portfolio and reduce your overall risk. Consider investing in a variety of ETFs to help you spread out your risk.
  5. Monitor your investments and adjust your portfolio as needed. Once you've picked your ETFs, it's important to regularly monitor your investments and make adjustments as needed. This could involve rebalancing your portfolio to ensure you're still on track to meet your investment goals, or selling and buying new ETFs as market conditions change.

Overall, picking the right ETFs involves doing your research, understanding your investment goals, and regularly monitoring your investments. By following these steps, you can help ensure that your ETF investments are well-suited to your needs and help you achieve your financial goals.

Ready to buy? Use our tools and analysis to guide your ETF trading

ETF Insights covers over 2600 index funds. Our comprehensive technical analysis provides a set of special stock screens that focus on:

ETF Trend-Sense

Top ETF picks based on daily data and developing trends

ETF Screener

ETF screener allows you to craft your own custom screens to discover the best ETFs in our database

ETF Scorecards

Over 2600 ETFs rated according to the strength of their trends: (1) based on daily data (2) based on weekly data

Sector and Style Scorecards

30 ETFs representing the most important sectors and styles are rated according to the strength of their trends:
(1) based on daily data (2) based on weekly data

Trend Performance Scorecard

Over 2600 ETFs are rated according to the change in the strength of their trends since the prior week.

Price Performance Scorecard

Over 2600 ETFs are rated according to the change in price since the prior week,

Here are some great ways to use our tools and ETF rankings:

Be sure to check our ETF Screener to find ETFs matching your search criteria.

Also check our Premium Stock Screener to find ETFs matching your search criteria.
Just set Sector and Industry both to "n/a" and your results will include only ETFs.