“WTF is an ETF?”
Yes, I can read your mind-voice.
An ETF, or exchange-traded fund, is an investment that commonly tracks the performance of an underlying index.
By investing in an ETF, investors can get access to a range of companies within the ETF instead of trying to pick individual companies.
Think of it like a value meal that you buy from a burger joint.
By paying a standard price, you get the burger, fries and drinks all-in, without having to go through the hassle of picking each food individually.
ETFs, as the name might imply, are traded on a stock exchange (which is linked to the stock market) and can be purchased just like any stock.
In Singapore, two popular ETFs are those that track the Straits Times Index (STI), Singapore’s stock market benchmark. Those ETFs are the SPDR STI ETF (SGX:
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