How To Choose The Right ETF For Your Portfolio

investing“There are a number of things to check to avoid losses, says Meenakshi Subramaniam. It’s a close cousin of the mutual fund. Nevertheless, it provides the thrill of stocks, too. The exchange traded fund (ETF), the most exciting investment in the market, is capable of giving sweeping returns,” Meenakshi Subramaniam Reports From Rediff Business.

“There are three types of ETFs, namely index exchange traded funds, commodity ETFs and bond ETFs. Index funds hold securities and replicate the stock market index. Whereas one company share may cost Rs 21,725 in the stock exchange, an index fund may allow you to buy one share for Rs 285.70, investing in 50 companies,” Subramaniam Reports.

“Among commodity exchange traded funds, there are gold ETFs, whose scintillating presence is familiar to all. In the bond category, there’s liquid ETF, which invests in money market instruments. There are more than 100 index-based ETFs, six gold ETFs and one liquid exchange traded fund. How should one choose the right ETF, among these myriad options,” Subramaniam Reports.

Subramaniam goes into detail on the list of the right ways to pick an ETF, but here is the list:

  • Choose single portfolio
  • No, to nav glitch
  • Be on right track
  • Moving or not?
  • Bid ask syndrome
  • Eschew expensive ETF

Full Story: HERE


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