Financial Snacks: How do we choose ETFs?
Description
Welcome to today’s snackable finance episode! One of the most common questions we get from women learning about ETFs is: How do we choose the right ones? Josh from eToro joins us to give a quick rundown on the best way to decide which exchange traded funds are right for you.
Josh explains that not all ETFs are the same, and in terms of buying in Australia, international companies may be included in the options. He also explains how understanding what sectors, countries or themes you want to invest in is the best place to start.
There are thousands of ETFs out there, so how do we narrow down our choices? Josh advises us to pay attention to the size of the fund, who is running it and what stocks it owns. This will give you an understanding of their performance, as well as the fees involved.
In order to avoid over-exposure to certain stocks, Josh talks about looking at the specific weighting within each ETF and how this will help ensure your portfolio is diversified. He gives us tips on using tools such as an ETF screener, which will help you search for specific criteria such as type of industry, company and fees.
So, tune in to this bite-sized conversation for some amazing tips on getting started on your ETF journey!
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