There are many aspects to consider when it comes to investing in an ETF. It is important to have an idea of which index or industry you are interested in, and what fee structure you are comfortable with.

How to invest in ETFs?

Before we go any further, here's some good news: we have a catch-all article that answers just that question! Just click here to learn how to buy ETFs online.

But to sum up just briefly, here are the steps you need to follow when investing in ETFs:

  1. Pick a trading target, such as a country or industry. ETFs can be a great tool if you want to bet on how a country, region, or sector will perform. Use a screener (provided by many online brokers) to filter out the countries or sectors you are interested in.
  2. Filter ETFs by size and expense ratio. ETF size is measured in AUM or assets under management. ETFs with an AUM above $100 million are usually more liquid.
  3. Choose the ETF domicile, stock exchange and currency. Different domiciles most probably will mean different taxation terms for you; while ETFs traded in a currency other than your broker account currency may involve conversion costs.
  4. Find your broker - they are all different when it comes to ETF selection, fees and platforms.
  5. Buy the ETF(s) of your choice
  6. Monitor your ETF positions regularly

What else do you need to know about ETFs?

Want to know more before deciding which is the best ETF for you? Check out these articles to deepen your knowledge:

 

Author of this article

Gergely Korpos

Author of this article

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of BrokerChooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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