There are many financial advocates who preach about ETFs, including us. It is one of our most-loved asset classes, which we have invested in. In 2021, there were over 8,552 Exchanged-Traded Funds (ETFs) globally. For one that may not be financially savvy, you might be spoilt for choice and have no idea how to differentiate a good ETF. It can be tough to determine which product will work best for your portfolio. Hence, how should you evaluate which ETF best suits you given the ever-expanding ETF landscape?
What is an ETF?
An ETF is essentially a collection of stocks that represent the fund’s underlying strategy. ETFs are exchange-traded funds that aggregate money from other investors and are listed and traded on a stock exchange.
An ETF often seeks to track or duplicate the performance of a specified index, such as the S&P 500 or a commodity index. These index-tracking ETFs are passively managed by ETF managers and do...