In this episode, we’re going to introduce you to your new investing best friend, Exchange Traded Funds, or ETFs, as you’ll come to know them. ETFs are a great investment option for new and experienced investors and are an easy way to build a low-cost and diversified portfolio with just a few trades.
They’re simple, they work, and you don’t need to be a financial wizard to get your head around them. Investing can be as easy as opening up a brokerage account, picking a low-cost, diversified ETF and buying small parcels frequently over a long period of time.
ETFs can be your entire portfolio or just the core, but they instantly open the world of investing to you. They have changed how we invest and simplified the often complex world of finance. So, in this episode, we talk about exactly why we’re so keen on ETFs, how they work and how you can use them to invest.
This episode is part of our Beginners Investing Month series on The Australian Finance Podcast. Just look for the episodes with the đź’¸ during August 2023!
🎟️ We’re going on the road from August – October 2023; get your tickets here!
đź“š Enjoyed this episode? You’ll love Kate’s upcoming book, Buying Happiness, which you can preorder on Booktopia or Amazon.
What are ETFs?
Exchange traded funds (ETFs) are a low-cost way to earn a return similar to an index or a commodity. They can also help to diversify your investments. You can buy and sell units in ETFs through a stockbroker, the same way you buy and sell shares.
Example for the ASX200: Instead of having to pick from shares like Telstra, Coles and BHP, buying an ETF that tracks the ASX 200, like A200 or IOZ, gives you instant diversification across the top 200 largest Australian listed companies.
