This article is produced in partnership with FSMOne.com.

So you have heard about the wonderful advantages of investing in Exchange Traded Funds (ETFs). ETFs provide us a  low-cost and simple way to create a diversified investment portfolio. Yet, with thousands of ETFs to choose from, how do we go about selecting the right ETF?

Here are three simple steps in helping you find the perfect ETF.

Step One: The Big Picture

Firstly, you must have an idea of what underlying asset are you interested to invest in? As an ETF is a fund, this means that it can invest in multiple types of securities. For example, you can choose between investing in ETFs that hold equity, fixed income or even gaining exposure into a niche sector. For example, there is an ETF, named as The Obesity ETF (SLIM), that focused on investing in companies that are fighting the