The alluring features of modern ETFs encourage a bigger number of participants to consider such investments in 2022. We have to admit that these assets are relatively low, compared to other options because they started emerging on a regular basis around 20 years ago. DotBig joined the list of brokerage companies that offer ETF day trading services.
Inexperienced users often don’t understand the difference between ETFs and stock indices due to the reason that both financial instruments are set of securities. However, unlike indices, ETFs can rely on assets from other markets, outside the stock market. You might invest in the set of such products as commodities and forex assets.
Explore how to start investing in ETFs quickly and efficiently.
Basics of ETF trading
Shares of international companies are the major components of ETFs. Together with other products, they form a basket. You invest in the whole basket, and its price is determined by the price rates of its components. If the value of collected shares increases, the price of the ETF will also go upwards. However, as mentioned above, Exchange-Traded Funds also provide exposure to other classes of assets, including commodities from different industries.
People, who are just exploring ETF options trading, might not know which ETF trading strategy is the best. Well, the DotBig analysts consider that long-term investing is what you should try when dealing with Exchange-Traded Funds. Similar to stock indices, ETFs are very convenient if you want to invest in a particular collection of shares from a certain sector. Long-term investing in companies’ securities means that you should expect a passive income in the future.
Exchange-Traded Funds are very safe and reliable investments both for beginners and for investors who operate large capitals. You can try this conveniently with the DotBig forex broker. Explore the best assets and the steps on the way to ETF investing.
Popular ETFs on the market
If you are exploring ETF trading, you probably want to know about the most promising Exchange-Traded Funds. Here we have a short compilation of the best ETFs available with DotBig:
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SPY – SPDR S&P 500 ETF. In 2022, the value of this asset varies around $390. If such an investment is affordable for you, consider investing in it as a part of your long-term ETF trading strategy. This basket includes the best US shares.
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QQQ – PowerShares QQQ ETF. If your ETF trading is somehow related to the NASDAQ-100 Index, you should choose this product. It has one of the biggest daily trading volumes.
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GLD – SPDR Gold Shares ETF. If commodity trading is a top priority for you but you are willing to explore the ETF market, choose this fund that tracks the gold price. It’s very stable due to this fact because prices on physical products aren’t as volatile.
Simple steps for investing in ETFs
If the best ETF investment options seem attractive to you, feel free to approach them with the help of DotBig! Here are the simplest steps you should take to become a member of the ETF trading community on our platform:
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Enter all the required information about yourself in a special enrollment form on our website. This is how you create a personal account on our trading platform.
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When you have a personal account authorized, we need to check whether you are of the age-eligible for trading. We also need to know the country of your residence. Provide your ID documents that will meet the requirements of our verification policy.
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When all the data is verified, you have to choose your plan and make the first deposit. The Basic account is the lowest plan with a minimum deposit of $250.
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Rely on our professional analyst. The specialist will help you to choose the most promising Exchange-Traded Funds. Approach them and start trading with professional assistance.
Pros
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They are well-diversified baskets of different securities - you don’t need to diversify your investment portfolio on your own.
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ETF trading is tax-efficient.
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ETF trading is similar to stock trading - if you have such an experience, it won’t be a big deal for you to understand how to invest in funds.
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ETF trading is expense-effective.
Cons
Your access to world markets – DotBig
Whatever asset you invest in, keep in mind that not all investments bring profits, some might cause losses. The guidance of our analysts is very helpful when you want to make well-thought-out investments in ETF and minimize the risks. But remember that even our stop-loss feature isn’t the guarantee that all deals will be profitable.
DotBig is your access to world markets and different asset classes. You can put your money in stocks directly or through indices, which include multiple securities. Speculate on the foreign and crypto exchange markets. Take advantage of CFD trading or any other trading option available with our broker! Trust DotBig!
