How to use ETFs in your portfolio

Bell Direct
July 28, 2020

Exchange traded funds or ETFs are a simple way to invest in global markets.

They generally track or replicate a basket of shares or bonds that make up an index.

ETFs are being used to construct investment portfolios in three main ways:

  1. Accessing a particular part of the market
  2. Building exposure to a certain asset class
  3. Building out an entire investment portfolio

You can use Bell Direct’s ETF filter to compare all the ETFs in the market based on asset classes, sector, performance and price.

Read Transcript

Exchange-traded funds or ETFs are a simple way to invest in global markets.

ETFs are also a very easy way to diversify your Aussie stock portfolio.

ETFs provide access to key investment themes such as income stocks or asset classes like property, international shares and bonds.

ETFs generally track or replicate a basket of shares or bonds that make up an index.

Now one of the most well known indices is the S&P500, which is made up of the 500 largest stocks in the U.S. on the New York Stock Exchange.

So you can simply invest in those stocks with one trade on the ASX.

The ETF that holds the largest stocks listed on the New York Stock Exchange is called iShare’s S&P500 ETF (ASX:IVV).

Now you can buy that on your Bell Direct trading account.

We see ETFs being used to construct investment portfolios in three main ways, the first way is to access a particular part of the market.

Let’s say you want to get exposure to emerging market companies, well there’s an ETF for that.

Or let’s say they want to build exposure to a certain asset class, for example investors might want to build an exposure to an international stock portfolio with just two ETFs (ASX:IVV) and (ASX:VEU).

Now VEU tracks a basket of stocks from developed and emerging market economies outside of the U.S..

Those two ETFs alone as an example invest across 2,700 stocks and 50 countries.

The last and final way that we see ETFs being used is to build out an entire investment portfolio across the major asset classes, from local shares, international shares, property and fixed income.

But whatever you’re after or however you want to invest, it’s as easy as buying or selling a share on the ASX.

Use Bell Direct’s ETF filter to compare all the ETFs in the market based on asset classes, sector, performance and price.

Now to access the ETF filter once you’ve logged into Bell Direct, head to the ‘Quotes and News’ tab, then click ‘Exchange Traded Funds’.

For more information check out our other demo videos on BDTV or chat to us online.

Happy trading.

Close Transcript

Morning Bell 13 August

Bell Direct
August 13, 2020

Morning Bell 12 August

Jessica Amir
August 12, 2020

Morning Bell 11 August

Jessica Amir
August 11, 2020

Morning Bell 10 August

Paulina Peters
August 10, 2020

Weekly Wrap 7 August

Bell Direct
August 7, 2020

Morning Bell 7 August

Geoff Beeston
August 7, 2020

Morning Bell 6 August

Paulina Peters
August 6, 2020