Exchange Traded Fund (ETF) - EXCHANGE INVESTMENT FUNDS

There are many tools for saving money for personal purposes, real estate, retirement. These include independent investing in securities funds. There is a lot of information in the public domain about ETFs, let’s touch on the main aspects 🔎

ETF is one of the best tools for long-term independent investment.
This is a simple opportunity, through one of the brokers, to purchase part of a fund consisting of:
🔹stocks of many companies in a particular industry, or

🔹reflecting the profitability of the stock market of one of the leading countries (for example, DAX, S&P 500, MSCI, etc.), or

🔹Following one of the stock indices, for example: S&P 500, DAX, MSCI Emerging Markets, Nasdaq-100 and others

We talked about DAX in detail in the next article.

Warren Buffett concluded an interesting experiment-controversy for $ 1 million in 2008. Buffett was so confident that the PASSIVE INDEX FUND would be more profitable than a portfolio of 5 managed funds, and he was right. Read the details in our Instagram.

Thus, by investing in ETFs, you are not purchasing a share of one specific company, but a PART OF THE FUND, consisting of a GROUP of SHARES of a single concept.

APros:
▪Simplicity, even for beginners.
▪Low initial investment (from 1 €).
▪The ability to buy and sell at any time.

➖Cons:
▪as such, they do not exist, but it will not be superfluous to soberly assess the current situation in the world.

➡️Most popular brokers in Germany:

Comparison ETF brokers from de.extraetf.com

Interestingly, during a pandemic, this tool has become more in demand.

 

Links for opening Brokerage accounts are listed below.

Each broker has its own pros and cons.

❗You should pay attention to the cost:
✔️each purchase / sale operation.
✔️annual account maintenance.
✔️accumulation programs (Sparplan).





 

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