What is an ETF for Beginners

If you’ve not heard of ETFs, this will hopefully be something that’s useful to you. 

instead of trying to pick the next Tesla or Google, it’s a much safer long term investment to use a vehicle such as an ETF. 

The Exchange Traded Fund is a collection of companies all lumped together and balanced by experts, so you can mitigate risk and maximize potential gains. 

There are ETFs in many sectors, from technology, energy, emerging markets etc. or one of the most popular being the S&P 500, which is a collection of the top 500 companies in the US. 

 

I would 100% recommend that everyone invest some of their portfolio in something like the S&P500.

It’s something that you can put money into periodically and let it build up over the years. With a good average of c.13% returns per year over the last 10 years, it can create some great future wealth.