Golden Rules for Exchange Traded Funds

Golden Rules for Exchange Traded Funds
Investment

Research shows that over a 10-year period, a widely diversified stock index has a very high potential to make a profit.

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Perfume The scope of exchange-traded funds (ETFs) is huge. By the end of 2021, there were 8500 products available worldwide. ETFs make up indexes such as DAX or MSCI away from the world. The spectrum ranges from equity and bond indexes to specialty factor ETFs that select securities based on criteria such as dividends or valuations, for example. But there are also multi-asset products that mix different asset classes.

The low cost, high level of transparency, and comparability are the main advantages of ETFs when compared to actively managed funds. Investors can easily understand the performance of ETFs. The question is, how many stocks should a private investor have in their portfolio?

“Very simple do-it-yourself solutions can do with just two or three ETFs,” says ETF specialist Kai Hatwich of Quirin Privetbank in Berlin. In this way, duplication of values ​​can be avoided.

Diversify ETF Portfolio With Stock Indexes

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