Guidelines to start on ETF

[wolfberries]

As above.

noob on ETF...

All i know is ETF don't take up much time compared to REITs.
Correct or nt ar?

Looking forward some guidance from seniors here

Thank you

 

[The Rain Man]

If you've some spare time, you can refer to this link for an overview on ETF's and how they work:

Exchange Traded Funds - MoneySENSE

I'd say that parking your money in an ETF (SGX Index for e.g.) is pretty 'safe' if you're in it for the long term.

 

[Keverus]

If i am not wrong, ETFs track indices?

 

[Shiny Things]

If i am not wrong, ETFs track indices?

Generally, yeah, but not always.

The original ETFs tracked indices like the S&P 500, the STI, or even just the price of gold. Now you get wacky stuff that tracks cash rates, volatility futures, and all sorts of stuff. Avoid the wacky stuff and stick to the STI ETFs, and you'll be fine.

 

[Lasogette]

Generally, yeah, but not always.

The original ETFs tracked indices like the S&P 500, the STI, or even just the price of gold. Now you get wacky stuff that tracks cash rates, volatility futures, and all sorts of stuff. Avoid the wacky stuff and stick to the STI ETFs, and you'll be fine.

Totally agreed. Avoid those wacky ones. There are also those 3X Bulls and 3X Bears ones

 

[Futureskid]

Generally, yeah, but not always.

The original ETFs tracked indices like the S&P 500, the STI, or even just the price of gold. Now you get wacky stuff that tracks cash rates, volatility futures, and all sorts of stuff. Avoid the wacky stuff and stick to the STI ETFs, and you'll be fine.

U seems to like ETFs so much that u always encourage people to buy them, making them feel like ETFs are the safest and profitable investment in the world.

 

[wolfberries]

U seems to like ETFs so much that u always encourage people to buy them, making them feel like ETFs are the safest and profitable investment in the world.

erm... so it's not ?

 

[hwmook]

erm... so it's not ?

Nope, safest is keep inside banks to earn interest.

 

[Epps_Sg]

U seems to like ETFs so much that u always encourage people to buy them, making them feel like ETFs are the safest and profitable investment in the world.

I think depends on the context. For "noobs", I think ETF that owns a basket of underlying stocks directly, meaning the ETF has no derivative products such as options, futures, are a whole lot 'less risky' and 'easier' than market timing individual stocks, options, futures, etc.

 

[JobHunter]

there's book name mcgraw hill all about ETF. Very good book explaining from head to toe knowledge.

 

[lzydata]

U seems to like ETFs so much that u always encourage people to buy them, making them feel like ETFs are the safest and profitable investment in the world.

Coming from a guy who promotes futures as safe and profitable and suitable for everyone, this is funny

 

[Shiny Things]

U seems to like ETFs so much that u always encourage people to buy them, making them feel like ETFs are the safest and profitable investment in the world.

Well, yeah. That's because they kind of are.

Here're just some of the advantages of ETFs (the boring, sensible, physical-replication, unleveraged, index-tracking sort):

1) Instant diversification
You don't have to worry about having all your portfolio in one stock any more, because you own ALL the stocks.

2) Lower volatility
If one of your stocks has a bad day, the rest of your stocks will tend to offset it - so your portfolio's swings and roundabouts are a lot smaller.

3) Not so much default risk
What if you own a bunch of Pear Computers and it goes bankrupt? If you own an ETF, you're only out 0.2% of your portfolio; if you own Pear Computers, you've lost the whole 100%.

4) No bankruptcy risk
An index can't go to zero; neither can an index ETF.

5) Easy stockpicking
You don't have to spend hours deciding between DBS and UOB and OCBC, or Olam and Wilmar and Noble, or Apple and Intel and HP. Just buy the index and spend your time doing something more fun!

Coming from a guy who promotes futures as safe and profitable and suitable for everyone, this is funny

Zing!

 

[hungryfriend]

so how to buy etf???

 

[makav31i]

so how to buy etf???

Open stock broker account and buy whichever etf u want or any stocks...

 

[wolfberries]

Open stock broker account and buy whichever etf u want or any stocks...

I opened Liao.

What's e next steps?

Like how to see n know which ETF to buy?

 

[hungryfriend]

Open stock broker account and buy whichever etf u want or any stocks...

ya i know i mean whats the code
i type sti etf also nth come out

 

[makav31i]

ya i know i mean whats the code
i type sti etf also nth come out

Nikko AM STI ETF is G3B...
SPDR STI ETF is ES3...

 

[tiny]

So to buy 1 lot is that sti etf stock ticker price x 1,000?

 

[makav31i]

So to buy 1 lot is that sti etf stock ticker price x 1,000?

Nikko AM STI ETF 1 lot is 100 shares..

SPDR STI ETF 1 lot is 1,000 shares..

So 1 lot is price of share × 100 or 1,000 depending on which one that your buying...

 

[hungryfriend]

Nikko AM STI ETF is G3B...
SPDR STI ETF is ES3...

thanks but is .SI or .SG?
whats the diff?