Golden Rules for Exchange Traded Funds

investment

Research shows that over a 10-year period, there is a very high probability of making gains on a broadly diversified stock index.

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Cologne The range of exchange-traded funds (ETF) is immense. At the end of 2021, 8500 products were available worldwide. ETFs track indices such as the Dax or MSCI World. The spectrum ranges from equity and bond indices to special factor ETFs that select securities based on criteria such as dividends or valuation, for example. But there are also multi-asset products that combine different asset classes.

Low costs, a high degree of transparency and comparability are the main advantages of ETFs compared to actively managed funds. Investors can easily understand the performance of the ETFs. The question remains, how many stocks should a private investor’s portfolio contain?

“Very simple do-it-yourself solutions can do with just two or three ETFs,” says Kai Hattwich, ETF expert at Quirin Privatbank in Berlin. In this way, duplication of values ​​can be avoided.

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