Choosing the right ETF – ETFs simplified | iShares – BlackRock (2024)

Sources

1 Global Business Intelligence, BlackRock, as of 31 May 2021

220 mins is an indicative time and investors should note that volatility will vary throughout the trading day.

3 BlackRock, Morningstar. Comparison is between the average Annual Report Net Expense Ratio 2020 for active open-end mutual funds (1.42%) available in Singapore and average Total Expense Ratio of all ETFs (0.56%) listed in Singapore as of 8/31/2021.

4The value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

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Choosing the right ETF – ETFs simplified | iShares – BlackRock (2024)

FAQs

How do I choose the right ETF to invest in? ›

2) Know the ETF's index
  1. Access to country-specific, regional, and global assets.
  2. Exposure to sectors that are areas of interest, such as technology, telecommunications, renewable energy sources or consumer goods.
  3. Access to specific asset classes, which include equities, fixed income, real estate, commodities, etc.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What are ETFs for dummies? ›

An exchange-traded fund (ETF) is a basket of securities that trades on an exchange just like a stock does. ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds, which only trade once a day after the market closes.

Is 3 ETFs enough? ›

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

Is it better to invest in multiple ETFs or one? ›

The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.

Which BlackRock funds perform the best? ›

Best BlackRock Mutual Funds for the Long Term
  • BlackRock Total Return MPHQX.
  • BlackRock Strategic Income Opportunities BSIIX.
  • BlackRock Strategic Global Bond MAWIX.
  • BlackRock High Yield Bond BRHYX.
  • BlackRock LifePath Index Target-Date Series.
  • BlackRock Technology Opportunities BGSIX.
  • iShares S&P 500 Index WFSPX.
Apr 24, 2023

What are the best 3 ETF portfolios? ›

These three ETFs--SPY, QQQ, and IWM--provide investors with a diversified approach to the stock market, covering the spectrum from large-cap stability to tech innovation to small-cap growth. They cater to investors aiming for a balanced investment portfolio that taps into various market segments.

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What is the downside of ETFs? ›

For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.

How to invest in ETFs for beginners? ›

How to buy an ETF
  1. Open a brokerage account. You'll need a brokerage account to buy and sell securities like ETFs. ...
  2. Find and compare ETFs with screening tools. Now that you have your brokerage account, it's time to decide what ETFs to buy. ...
  3. Place the trade. ...
  4. Sit back and relax.
Jan 31, 2024

Do you pay taxes on ETFs if you don't sell? ›

At least once a year, funds must pass on any net gains they've realized. As a fund shareholder, you could be on the hook for taxes on gains even if you haven't sold any of your shares.

How many S&P 500 ETFs should I buy? ›

SPY, VOO and IVV are among the most popular S&P 500 ETFs. These three S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns. Investors generally only need one S&P 500 ETF.

What is the Lazy 3 fund portfolio? ›

Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.

What is a lazy portfolio? ›

A Lazy Portfolio is a collection of investments that requires very little maintenance. It's the typical passive investing strategy, for long-term investors, with time horizons of more than 10 years. Choose your investment style (Classic or Alternative?), pick your Lazy Portfolios and implement them with ETFs.

What ETFs should be in your portfolio? ›

10 ETFs to Build a Diversified Portfolio
FundExpense Ratio
iShares Core Moderate Allocation ETF (ticker: AOM)0.15%
iShares MSCI World ETF (URTH)0.24%
Vanguard Total World Bond ETF (BNDW)0.05%
iShares National Muni Bond ETF (MUB)0.05%
6 more rows
May 2, 2024

Is it smart to just invest in ETFs? ›

ETFs make a great pick for many investors who are starting out as well as for those who simply don't want to do all the legwork required to own individual stocks. Though it's possible to find the big winners among individual stocks, you have strong odds of doing well consistently with ETFs.

Are ETFs good for first time investors? ›

ETFs can be a great investment for long-term investors and those with shorter-term time horizons. They can be especially valuable to beginning investors. That's because they won't require the time, effort, and experience needed to research individual stocks.

How do I choose an ETF or index fund? ›

Typically, it comes down to preferences related to management fees, shareholder transaction costs, taxation, and other qualitative differences. Despite the lower expense ratios and tax advantages of ETFs, many retail investors (non-professional, individual investors) prefer index mutual funds.

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