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Wealth - ETFs

Going for brokerage: Making serious money out of ETFs

Andrew Banks

Andrew Banks

Journalist •

Going for brokerage: Making serious money out of ETFs
Credit: Nattanan Kanchanaprat / Pixabay

Exchange-Traded Funds (ETFs) are investment funds that hold assets like stocks, bonds, or other commodities. 

They are traded on stock exchanges, like individual stocks, and offer investors a way to diversify their portfolios.

What is the world's richest ETF right now?

The SPDR S&P 500 ETF Trust (SPY) is currently the world's richest ETF, with assets under management (AUM) of approximately US$599.42 billion.

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What is Australia's richest ETF?

Australia's richest ETF is the Vanguard Australian Shares ETF (VAS), which tracks the Australian share market.

How can you make money with ETFs?

You can make money with ETFs by:

  • Long-term investing: Holding ETFs for an extended period to benefit from market growth.
  • Reinvesting dividends: Many ETFs pay dividends, which can be reinvested to purchase more shares.
  • Diversification: Spreading your investments across different sectors to reduce risk.
  • Low fees: Choose ETFs with low expense ratios to maximize returns.

What are the top 5 ETFs?

The top 5 ETFs by assets under management are:

  1. SPDR S&P 500 ETF Trust (SPY)
  2. iShares Core S&P 500 ETF (IVV)
  3. Vanguard S&P 500 ETF (VOO)
  4. Vanguard Total Stock Market ETF (VTI)
  5. Invesco QQQ Trust (QQQ)

How do you invest in ETFs?

To invest in ETFs, you need to:

  • Open a brokerage account: You'll need a brokerage account.
  • Research ETFs: Look for ETFs that match your investment goals and risk tolerance.
  • Fund your account: Deposit money into your brokerage account.
  • Place an order: Buy the ETF shares through your brokerage platform.

What risks are associated with ETFs?

ETF risks include:

  • Market risk: ETFs' value fluctuates with market conditions.
  • Liquidity risk: Some ETFs may have low trading volumes, making it difficult to buy or sell shares quickly.
  • Tracking error: The ETF's performance may not match the index it tracks.
  • Management fees: While generally low, ETFs still have management fees that impact returns.

How do ETFs compare to other investment options?

ETFs offer several advantages over other investment options:

  • Diversification: ETFs provide exposure to a wide range of assets, reducing individual stock risk.
  • Lower costs: ETFs typically have lower expense ratios than mutual funds.
  • Liquidity: ETFs can be bought and sold throughout the trading day, providing flexibility.
  • Transparency: ETF holdings are usually disclosed daily, allowing investors to see exactly what they own.

Disclaimer: This article provides general information and does not constitute financial advice. Always consult a professional advisor before making investment decisions.