ETFs explained – ETFs simplified | iShares – BlackRock (2024)

This material is prepared by BlackRock (Singapore) Limited (co. registration no. 200010143N) for informational or educational purposes only. This does not constitute an offer or solicitation to purchase or sell in any securities or iShares Funds, nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

There are risks associated with investing, including loss of principal. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investments in a developed country. Investors should be aware that the price of shares of the iShares Funds, and the income from them (if any), may fall as well as rise, and investors may not get back their original investment. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. iShares Funds are not sponsored, endorsed, issued, sold or promoted by their index providers. For details of the index provider including any disclaimer, please refer to the relevant iShares Fund offer document.

This material contains general information only and is not intended to represent general or specific investment advice. The information does not take into account your financial circ*mstances. An assessment should be made as to whether the information is appropriate for you having regard to your objectives, financial situation and needs. Before investing, you should carefully consider the investment objectives, risks, charges and expenses and all other information contained in the relevant offering documents which is available from BlackRock or the iShares websites.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

The opinions expressed are as of October 2021 and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or distributed without the prior written consent of BlackRock.

The information provided here is not intended to constitute financial, tax, legal or accounting advice. You should consult your own advisers on such matters.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

© 2021 BlackRock Inc. All rights reserved.

MKTGH1023A/S-3173713

ETFs explained – ETFs simplified | iShares – BlackRock (2024)

FAQs

ETFs explained – ETFs simplified | iShares – BlackRock? ›

ETFs are investment funds that track the performance of a specific index – like the STI Index or S&P 500. Just like stocks, you can trade ETFs on a stock exchange at any point during market hours.

What is a simple way to explain ETF? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

Are BlackRock ETFs a good investment? ›

These top-rated funds from BlackRock make excellent buy-and-hold investments for the long term in 2024 and beyond. With more than $10 trillion in assets under management, BlackRock is the largest asset manager in the world.

What ETF is owned by BlackRock? ›

BlackRock ETF List
NameTickerAdjusted Expense Ratio
BlackRock Large Cap Value ETFBLCV0.550%
BlackRock Long-Term U.S. Equity ETFBELT0.750%
BlackRock Short-Term CA Muni Bd ETFCALY0.200%
BlackRock Total Return ETFBRTR0.380%
21 more rows

How many ETFs should I own as a beginner? ›

The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.

How do you explain ETF to a child? ›

ETFs (Exchange Traded Funds) Some investors choose to put their money in mutual funds. A mutual fund pools money from different investors to invest in a portfolio of stocks, bonds, and short-term debt. Investors buy a piece of that portfolio, or shares in the mutual fund, and make profits when the mutual fund grows.

How to choose ETFs for beginners? ›

Before purchasing an ETF there are five factors to take into account 1) performance of the ETF 2) the underlying index of the ETF 3) the ETF's structure 4) when and how to trade the ETF and 5) the total cost of the ETF.

Is there a downside to ETFs? ›

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.

What is the number one ETF to invest in? ›

Top 25 ETFs
RankSymbolFund Name
1SPYSPDR S&P 500 ETF Trust
2IVViShares Core S&P 500 ETF
3VOOVanguard S&P 500 ETF
4VTIVanguard Total Stock Market ETF
21 more rows

Which BlackRock fund is best? ›

  • iShares 1-3 Year Treasury Bond ETF (SHY)
  • BlackRock Equity Dividend Fund (MDDVX)
  • iShares Core S&P 500 ETF (IVV)
  • BlackRock Emerging Markets Fund (MDDCX)
  • iShares Core Dividend Growth ETF (DGRO)
  • BlackRock Health Sciences Trust (BME)
  • iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB)
Jul 12, 2024

What stock does BlackRock own the most? ›

BlackRock
  • Top 5 stock holdings are MSFT, NVDA, AAPL, AMZN, META, and represent 20.46% of BlackRock's stock portfolio.
  • Added to shares of these 10 stocks: NVDA (+$205B), CMG (+$6.7B), MSFT (+$3.5B), XOM (+$3.4B), GEV (+$3.1B), APH (+$3.0B), AAPL (+$2.9B), CRH (+$2.4B), LH (+$1.9B), IVV (+$1.5B).

Which is better, iShares or Vanguard? ›

The Vanguard fund has a lower price-to-earnings ratio, at 17.4 times, compared with 18.3 for iShares. This is due to the lower weighting to the highly rated US market. Fees are comparable, with iShares costing 0.2% and Vanguard costing 0.22%.

What family owns BlackRock? ›

The company's largest individual shareholders include original BlackRock owners and founders Larry Fink and Susan L. Wagner, Robert S. Kapito, as well as its top executives Richard Kushel and Murry S. Gerber.

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What is the 3 ETF strategy? ›

A three-fund portfolio is an investment strategy that involves holding mutual funds or ETFs that invest in U.S. stocks, international stocks and bonds. The strategy is popular with followers of the late Vanguard founder John Bogle, who valued simplicity in investing and keeping investment costs low.

How long should you hold an ETF? ›

You can hold ETFs as long as you want. Allow compound interest to work for you over time. However, you should avoid selling ETFs when the market is down since you can miss out on the potential to gain money when the market recovers.

How does ETF work with an example? ›

An ETF provider takes into account the universe of assets, such as stocks, bonds, commodities, or currencies, and builds a basket of them, each with its own ticker. Investors can buy a share in that basket in the same way they would buy stock in a firm.

How is ETF different from stocks for beginners? ›

The biggest difference between ETFs and stocks is that a stock represents ownership in a single company, whereas an exchange-traded fund is a collection of investable assets and securities, including stocks and bonds. Both can be bought and sold during the day when the stock market is open.

What is an ETF summary? ›

Exchange-traded funds (ETFs) are SEC-registered investment companies that offer investors a way to pool their money in a fund that invests in stocks, bonds, or other assets. In return, investors receive an interest in the fund.

How does an ETF make you money? ›

Traders and investors can make money from an ETF by selling it at a higher price than what they bought it for. Investors could also receive dividends if they own an ETF that tracks dividend stocks. ETF providers make money mainly from the expense ratio of the funds they manage, as well as through transaction costs.

Top Articles
The Process of Freight Forwarding Comprehensive 2023 Guide
What is Code Obfuscation? | Guardsquare
No Hard Feelings Showtimes Near Metropolitan Fiesta 5 Theatre
Design215 Word Pattern Finder
Cold Air Intake - High-flow, Roto-mold Tube - TOYOTA TACOMA V6-4.0
Www.fresno.courts.ca.gov
Euro (EUR), aktuální kurzy měn
Botw Royal Guard
What Are the Best Cal State Schools? | BestColleges
America Cuevas Desnuda
Teamexpress Login
Tiger Island Hunting Club
2135 Royalton Road Columbia Station Oh 44028
Insidekp.kp.org Hrconnect
The Witcher 3 Wild Hunt: Map of important locations M19
Nyuonsite
Love In The Air Ep 9 Eng Sub Dailymotion
Illinois Gun Shows 2022
Imagetrend Inc, 20855 Kensington Blvd, Lakeville, MN 55044, US - MapQuest
Shasta County Most Wanted 2022
Lista trofeów | Jedi Upadły Zakon / Fallen Order - Star Wars Jedi Fallen Order - poradnik do gry | GRYOnline.pl
Kashchey Vodka
Myhr North Memorial
Air Quality Index Endicott Ny
Mtr-18W120S150-Ul
The best brunch spots in Berlin
Weldmotor Vehicle.com
City Of Durham Recycling Schedule
Effingham Daily News Police Report
Obituaries, 2001 | El Paso County, TXGenWeb
Uno Fall 2023 Calendar
Parent Management Training (PMT) Worksheet | HappierTHERAPY
Wells Fargo Bank Florida Locations
Diggy Battlefield Of Gods
Mumu Player Pokemon Go
140000 Kilometers To Miles
Dumb Money, la recensione: Paul Dano e quel film biografico sul caso GameStop
Vitals, jeden Tag besser | Vitals Nahrungsergänzungsmittel
Staar English 1 April 2022 Answer Key
Fapello.clm
The Angel Next Door Spoils Me Rotten Gogoanime
Strange World Showtimes Near Century Stadium 25 And Xd
Streameast Io Soccer
Hdmovie2 Sbs
Rocket League Tracker: A useful tool for every player
Www Pig11 Net
60 Days From August 16
The Hardest Quests in Old School RuneScape (Ranked) – FandomSpot
Pilot Travel Center Portersville Photos
라이키 유출
What Are Routing Numbers And How Do You Find Them? | MoneyTransfers.com
Dinargurus
Latest Posts
Article information

Author: Geoffrey Lueilwitz

Last Updated:

Views: 5823

Rating: 5 / 5 (60 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Geoffrey Lueilwitz

Birthday: 1997-03-23

Address: 74183 Thomas Course, Port Micheal, OK 55446-1529

Phone: +13408645881558

Job: Global Representative

Hobby: Sailing, Vehicle restoration, Rowing, Ghost hunting, Scrapbooking, Rugby, Board sports

Introduction: My name is Geoffrey Lueilwitz, I am a zealous, encouraging, sparkling, enchanting, graceful, faithful, nice person who loves writing and wants to share my knowledge and understanding with you.