Why Should You Learn How to Invest in ETFs?
| Duration: | 2 Day |
| Attendance: | Online |
Traditionally, the way to invest using mutual funds is through your bank. However, there are inherit negatives to this method. For a start, offers from the bank are generally much less profitable due to higher costs. Additionally, mutual funds statistically do not outperform their benchmark.
If you want to invest yet do not have the time or energy to research and monitor individual stocks; If you want a passive investing strategy that allows you to invest and forget; Perhaps you are also just looking to diversify your investments into low cost and lower risk products rather than individual stocks…
There really is only one way to achieve all of these objectives – ETFs.
ETFs, or Exchange-Traded Funds, are marketable securities that track indices, commodities, bonds, or a basket of assets, similar to an index fund. Unlike mutual funds, ETFs trade like common stocks on a stock exchange. And, unlike mutual funds, there is vastly greater liquidity with ETFs, allowing you to get in and out of the market much quicker than you can with mutual funds.
In this course, you will learn how you can save more than 1% per year on commissions compared to traditional mutual fund investments. You’ll also learn how to invest using a simple buy and hold strategy on an ETF basket, which carries a drastically higher probability of success compared to any wealth manager due to lower expenses.
This course has been designed so that traders, or aspiring traders of varying ability, can get started and become successful investing in ETFs.
Here is a breakdown of what we will be covering:
Syllabus:
- Basic investments principles
- Overview on stock markets and fixed income markets
- How do mutual funds work?
- What is an ETF?
- Why ETFs are less expensive than mutual funds and thus are a better choice.
- Why mutual funds on average, deliver lower return in the long term than etf
- How an ETF is created: creation , redemption and pricing.
- ETF markets
- How to invest in ETFs
- Types of ETFs
- Equity ETFs
- Fixed income ETFs
- Commodities ETFs
- Passive and active ETFs
- How to choose an ETF based on its costs: P/E ratio, expense ratio, bid-ask spread, average daily volume
- Assets under management, tracking differences
- Building a portfolio
- When a mutual fund could be more convenient than an ETF
- Bonus: Trading on ETF
