What should I consider?
There are a few aspects to look out for when choosing an ETF....This first week of August has been shocking to many investors.
Major world indices, including the US S&P 500 (^SPY) and NASDAQ Composite Index (^IXIC), as well as Japan’s Nikkei 225 (^NI225), experienced some of their worst days, stoking fears of an extended market sell-off.
Singapore’s Straits Time Index (^STI) also fell by 4.1% on 5 August 2024.
By 16 August, US markets had more than recouped those losses and more, with the NASDAQ Composite Index and S&P 500 popping 2.3% and 1.6% respectively.
These events highlight the ever-present volatility of the stock markets and demonstrate how difficult it is to accurately predict market movements.
To safeguard against such unpredictability, investors could consider exchange-traded funds (ETFs).
An ETF, which contains a diversified basket of securities that trades on an exchange, is more suitable for risk-averse investors.
After all, there is this famous quote: “Don’t put all your eggs in one basket”.
