Name: Ai Ï
Brand: Ai Ï
Rating: 4.8 (118 reviews)

1:20 leverage
Wide range of asset class to diversify portfolio
Covered wide sectors & regions
Underlying asset managed by fund manager
Competitive spread
No extra fee or commission
Traders can trade the stock markets after-hours trading

ETF Investment

Whenever you have cash constraints and prefer lower investment minimums, ETFs are a suitable option to enter the market. Simply put, you can buy a single ETF at the same price you would purchase a share at an index. For example, if you do not meet the minimum price for 1 share in a single company, you could buy an ETF in which the same company is one of the tracked instruments.

Exchange-traded funds make it easy to begin investing. They are straightforward and easy to understand. Therefore, a beginner investor can use ETFs to generate passive income with good returns.

For more clarity, here are some unique characteristics of ETFs and how ETF investment takes place.

In practice, when you buy ETF, you buy fractions of a collection of multiple stocks in one go. An investor purchases shares in an ETF, and that money is spread out to buy a collection of attractive investments that meet a certain objective. For example, if someone buys the S&P 500 ETF, he indirectly invests among 500 companies listed in that index.

ETFs work a bit like mutual funds do, however, mutual funds have a fixed daily price and a fixed purchase amount. Another small difference is that with mutual funds, all transactions take time. ETFs can be purchased just like the stocks listed on major exchanges. The advantage ETFs have is that you only need to choose how many ETF shares you want to buy and trade them like stocks. The prices fluctuate throughout the day, and anyone can trade them if the markets are open.

Difference between ETFs and Mutual funds

ETFs	Mutual Funds
ETFs allow investors to spread a single trade over many stocks and bonds simultaneously. A single trade can capture many market segments.	Investors pool money to invest in a diversified portfolio.
You can buy ETFs from any exchange.	Investors have to purchase the mutual funds directly from the company that issues the shares.
Prices continually fluctuate when the market is open. You can purchase ETFs any time during market hours.	Mutual funds will have the market price fixed once per day.

Characteristics	ETFs	Mutual Funds
Diversification Benefits	✔	✔
Intraday Pricing	✔	❌
Options Trading	✔	❌
Margin Buying	✔	❌
Short Selling	✔	❌
Control over Capital Gains Treatment	✔	❌

1. Passive & active ETFs

Passive ETFs usually track a certain index and want to match its overall performance. On the other hand, an active ETF will hire portfolio experts to invest in instruments that will beat the index’s overall performance.
2. Expense ratios

ETFs usually charge a fee referred to as the expense ratio. The expense ratio is marked as an annual percentage that reflects the total amounts you invest. You will save more if you invest in ETFs with low expense ratios.
3. ETFs pay dividends

When you invest in ETFs as part of your portfolio, you can enjoy dividends that can be paid in cash or reinvested (dividend reinvestment plan).

How Much to Invest in ETF per Month?

Trading ETFs does not need a theoretical minimum or maximum amount of money you can invest. With its default diversification capabilities, ETF investment does not require large amounts to get started, yet you can have exposure to a range of stocks in one click. You can also trade ETF like you would trade stock and have more diversification.

Some brokers, however, offer fractional shares; at the very least, you would need to pay up a certain fraction of the price of the underlying shares to trade ETF. This could be as low as $10.

invest in etf

Regardless of the amount you want to invest, you need to factor in a little extra for the fees you pay. There are transaction costs charged when you make a purchase or a sale. Commissions are charged, too, but most brokers lately offer zero-commission trading. Always confirm these fees and commissions with your chosen one before you trade. Even so, the brokers who charge commissions will keep a list of ETFs you can trade commission-free.

You can buy however many ETFs you want, but this all depends on how much they are priced and how much you are willing to commit. There is a lot of entry-level access, so you do not have to spend all your money in one go. You can take advantage of fractional ETFs and build as you go.

When you make your first deposit, a broker or custodian company will hold your money. Use your created account to monitor your portfolio and available balances every time you log in.

Flexible trading options

Unlike traditional mutual funds, ETFs can change in price like stocks and allow to trade by financing, shorting or trading options, giving you more flexibility than traditional mutual funds.
Increase the diversity of portfolio

Investing in ETFs is like investing in multiple securities at the same time, you can diversify your portfolio and reduce risk.
Transparency

ETFs are designed to mimic the composition of an index and track that index.
Global investment

Some ETFs track markets in different regions or even different countries. Making investing in ETFs a great choice for investing in U.S. stocks and overseas markets.
Lower cost

The cost of buying ETFs is usually lower than buying mutual funds. No management fees for ETFs traded with Ai Ï.

Trade ETF CFDs with Ai Ï

Ai Ï offers 30+ new ETF CFDs with the most popular Financial, Precious Metals, Technology, and Energy shares. You can trade CFDs of 300+ such companies directly from your Ai Ï account. Get the best market prices and use our 1:20 leverage to trade larger positions.

Ai Ï gives you a convenient option to trade a contract-for-difference on ETFs. In trading CFDs, an investor does not have to purchase or sell a claim to an ETF on any exchange. They can trade on the price movements of the underlying ETF. A trader can go long or short without any ownership interest restrictions. (There is no ownership interest when you trade CFDs)

With CFDs, you can trade ETF in any direction, from any market sector, and in any region around the globe. If you anticipate a decline in growth or value, you can short-sell an ETF CFD to profit from its fall. Whenever you anticipate its value appreciating, you simply buy the ETF CFD.

ETF trading in CFDs allows you to apply leverage only to commit a small portion of the preferred notional value to enter a trade. This greatly reduces the capital requirements for trading ETFs. You can diversify and apply your capital over a broader range of trading opportunities.

The wide selection of ETF CFDs you can trade with an Ai Ï account means you have a good pick anywhere your investment interest will point you. Furthermore, you only need a small commission per trade instead of paying for additional markups.

Instruments	Name	Minimum Spreads
#ETF-ARGT	Global X MSCI Argentina ETF(CFD)	0.05
#ETF-ASHR	Xtrackers Harvest CSI 300 China A-Shares ETF(CFD)	0.05
#ETF-DIA	SPDR Dow Jones Industrial Average ETF(CFD)	0.08
#ETF-EEM	iShares MSCI Emerging Markets ETF(CFD)	0.05
#ETF-EFA	iShares MSCI EAFE Index ETF(CFD)	0.05
#ETF-EIDO	iShares MSCI Indonesia ETF(CFD)	0.05
#ETF-EPP	iShares MSCI Pacific ex-Japan ETF(CFD)	0.05
#ETF-EPU	iShares MSCI Peru ETF(CFD)	0.05
#ETF-ERUS	iShares MSCI Russia Capped ETF(CFD)	0.05
#ETF-EWH	iShares MSCI Hong Kong ETF(CFD)	0.05
#ETF-EWM	iShares MSCI Malaysia ETF(CFD)	0.05
#ETF-EWT	iShares MSCI Taiwan ETF(CFD)	0.05
#ETF-EWW	iShares MSCI Mexico ETF(CFD)	0.05
#ETF-EWY	iShares MSCI South Korea ETF(CFD)	0.05
#ETF-EWZ	iShares MSCI Brazil ETF(CFD)	0.05
#ETF-EZA	iShares MSCI South Africa ETF(CFD)	0.05
#ETF-GDX	VanEck Vectors Gold Miners ETF(CFD)	0.05
#ETF-GLD	SPDR Gold Trust ETF(CFD)	0.05
#ETF-GXC	SPDR S&P China ETF(CFD)	0.05
#ETF-ILF	iShares Latin America 40 ETF(CFD)	0.05
#ETF-IVV	iShares Core S&P 500 ETF(CFD)	0.08
#ETF-IWM	iShares Russell 2000 ETF(CFD)	0.05
#ETF-IYY	iShares Dow Jones U.S. ETF(CFD)	0.05
#ETF-KSA	iShares MSCI Saudi Arabia ETF(CFD)	0.05
#ETF-SMIN	iShares MSCI India Small Cap ETF(CFD)	0.05
#ETF-SPY	SPDR S&P 500 Index ETF(CFD)	0.08
#ETF-THD	iShares MSCI Thailand ETF(CFD)	0.05
#ETF-USO	United States Oil Fund ETF(CFD)	0.05
#ETF-VNM	VanEck Vietnam ETF(CFD)	0.05
#ETF-VNQ	Vanguard Real Estate Index Fund ETF(CFD)	0.05
#ETF-VTI	Vanguard Total Stock Market Index ETF(CFD)	0.05
#ETF-VUG	Vanguard Growth Index Fund ETF(CFD)	0.05
#ETF-XLE	SPDR Energy Select Sector Fund ETF(CFD)	0.05
#ETF-XLF	SPDR Financial Select Sector Fund ETF(CFD)	0.05
#ETF-XLK	SPDR Technology Select Sector ETF(CFD)	0.05

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Deposit funds from a credit card, E-Wallet or bank transfer to start trading.
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FAQ

What is ETF?

ETF is the acronym for an innovative financial product, Exchange Traded Fund. It is a type of security that tracks an index, sector, commodity, or other asset. An ETF can be purchased or sold on a stock exchange the same way a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. When trading ETFs, you have many trading opportunities to choose from because the liquidity of an ETF reflects the liquidity of the underlying basket of shares.

How to Invest in ETF?

Step 1 - Open an account with a broker

You need to have a broker who provides a platform for you to trade ETFs. Lately, you can find many brokers with select ETF trades available on a commission-free basis. This ensures that costs will not be a major impediment as you start. Make a quick sketch and compare the brokers' cost structures and the benefits available on their platforms. It is at this time that you should be on the lookout for attractive promotions that will help you grow your profits.

Next, consider the educational incentives provided on the platform. An extensive range of training and advisory tools like podcasts and webinars show that a broker also cares about the beginner trader’s investment.

The accounts are easy to create and verify, with most only taking about 10 minutes from start to finish. It would help if you had a bank account number (or a credit card) to ensure you can channel your funds to and from the broker with urgency and safety.

Some brokerages offer unique discount facilities such as being able to buy ETF from your UK and American retirement banking funds like 401(k) or 403(b)s. These ensure that your retirement funds also generate passive income instead of waiting to retire. You can check with your broker whether they have tax advantage accounts that you can benefit from.

Step 2 - Choose the ETFs you like.

Beginners are better off trading in passive index funds as they learn how to operate. They also do not get plenty of surprises from analysts working for the fund. The index funds are also cheaper than those that experts manage. Historically, even the managed funds do not beat the benchmark by a huge margin.

Step 3 - Buy ETFs with historical growth

Once you have funded the account, you can buy some small tranches of growth ETFs. You will need to search for the ticker symbols of the ETFs you have chosen and confirm them from the broker’s platform. Look at their chart performance to confirm you are watching the ETFs you intended to buy. Some broker platforms make it easy to buy ETFs right from the research section of the platform. Otherwise, you can open the trade section where all the ETFs are listed and scroll to the preferred ETF.

Step 4 - Enter market order

Next, select the number of ETF shares you want to purchase and enter a market order. Entering a market order is instant than placing a certain limit order and waiting for the price to reach there. You can, however, place a limit order if you do not mind waiting.

Step 5 - Develop a follow-up plan

ETF trading is not a one-off affair. You will need to keep adjusting your portfolio to accommodate more opportunities. Some people identify some possible trades and accumulate them slowly over time. Furthermore, considering that many people invest in ETFs as a long-term savings plan, it is wise to have a fixed percentage of your monthly income going into your brokerage account. This will help you make more share purchases in the future so that you can reach your investment goals faster. Your broker and bank can let you have a cash standing order clocking into your trading account on an agreed timeframe.

Where to Buy ETF?

ETFs usually mimic a greater market index such as the S&P 500. Like trading stocks, you can invest in ETF through an exchange and make dividends if you hold on to them. You can also make money as they fluctuate with the specific index. You can, however, buy ETFs from a broker who supports ETF trading facilities. Most of these brokers are available for online trading, as you only need to open an account with an online broker like Ai Ï.

These brokers give investors the platform to trade in ETFs and provide other essential benefits like training, analysis, news, and technical support. Ai Ï offers robust analysis to keep you informed and provides a platform that is easy to use.

A good broker will offer various stocks, ETFs, bonds, and currencies that you can mix and match to optimise your portfolio and grow. Furthermore, the ability to trade contracts for differences on ETFs makes it an even more convenient and fun way to invest your money comfortably from home. Using an online broker that supports ETF CFDs can let you tap into an ETF fund and still avoid most of the expenses you would incur if you deal directly with a certain exchange.

When looking for where to buy ETF, consider a broker who offers some of these benefits

Choose a platform that has plenty of instruments that you can choose from.
The broker offers competent third-party research.
A simple and convenient means to log into their platform and trade anytime.
Lower commissions will leave more profits to reinvest.
The broker should have affordable minimum deposit requirements.

How to Choose and Buy the Right ETF?

Once you know where to buy an ETF and already have a brokerage account, the next crucial part is choosing which ETF to buy. Some investors will pick the best-performing index, while some will still opt for more boxes to be checked. There are different ways to narrow down to what suits you more.

Some people cluster the available ETFs according to geography, asset type, industry involved, or trading performance. Narrow down your choices using the below steps:

Choice 1 - Low administration cost ETF

Administration costs in ETF investment are also referred to as expense ratios. The lower the expense ratios, the better it is for your investment because you get to keep most of your profits. The average for passive funds in 2020 was 0.12%. This is a good figure, to begin with, but you will still likely find some below that.

Choice 2 - By ETF segment

You can consider what industry segments you want to invest in. This will help you have a general investment strategy that you can tweak anytime you feel that segment is performing differently.

Choice 3 - By investment focus

You can select your choice of ETFs according to your preferred investment focus. Would you want your focus to be on equities or commodities, for example? You can also mix all these but do it according to a certain weighting formula. You can, for example, let your portfolio consist mostly of equities and ETFs rather than commodities. Some commodities ETFs you can find in the market include the INVESCO DB Agriculture Fund. Emerging markets are some of the best ETFs to buy now.

Choice 4 - Add diversification ETF to your portfolio

Even as you capture some of your favourite and unique market segments, you should also spread some of your wealth widely within the segments. If you are buying equity ETFs, you can split the investment between emerging markets and already established markets across the globe. For example, you could pick energy stocks and spread them across the US and the UK. Have a theme, too, if you need to. Renewable energy is rewarding over time, and plenty of companies indirectly thrive, even in different industries like electric cars.

How does an ETF Work?

An ETF is an investment instrument that provides exposure over a basket of stocks or bonds with just a single trade. This also occurs at minimal expense compared to buying the instruments individually.

ETFs reduce a lot of trial and error involved with picking a handful of stocks listed and hoping they gain value. They minimise guesswork because your exposure is spread across the market's overall performance. Historically, a whole index can remain strong through the years.

ETFs are more liquid than other types of investments, such as mutual funds, making it convenient to trade them right from your computer or on the go.

For example, while it takes many steps to invest in bonds, trading and bond ETFs give you one-click access to fixed incomes.

Due to their straightforward nature, ETFs are a good way for expert and beginner traders to participate in the market. They also suit both the hands-off and hands-on investor.

The type of investor you want to be should also convince you to focus more on ETF investment. There are solutions for beginners, expert investors, and hands-on and hands-off investors. With ETFs being an affordable investment, you can choose brokers with robot-advisory integration. These are experts who can help you build a portfolio and help you manage it.

Some investors may argue that there are few opportunities to grow on returns from a whole index compared to buying single stocks. However, this is not true because what they may not tell you is that on losing seasons, you will be safer than someone who bought a huge stock holding from a single company and they plummeted. Even if ETF investment is not free of management costs, they are still very low and worth saving you the headache of managing every stock in a portfolio.

Hands-on investors will find trading ETF orders a suitable way to invest because they can always choose how much to invest per single trade. They can also enjoy real-time price movements and alter their positions depending on market movement. This gives them more control over their portfolio performance compared to mutual funds.

30+ New ETF CFDs