Is ETF (Exchange Traded Fund) really risky or not? Do you know that it may open a long-term investment path? Let's find out the article below!
What are ETFs?
ETF stands for Exchange Traded Fund. ETFs typically represent a sector or an economy. Therefore, when you invest in ETFs, you are investing in an entire industry, not just a single product.
To make it easier to imagine, when you invest in a mixed financial market ETF consisting of Forex, Metals, Commodities, Stocks, Indices,... This means you are investing in ETFs with a diversified portfolio structure of financial asset classes. That's the biggest difference between investing in an ETF and trading one of the regular asset classes.
However, there are some exceptions ETFs sometimes track only an index, single commodities, etc.
History of ETF
ETFs are financial products created in 1993 in the US when Nathan Most and Steven Bloom developed the S&P SPDR Deposit Receipts index. However, it did not resonate much at the time because it was thought that it was just a financial instrument.
One of the first people to build the Exchange Traded Fund was the Economist Harry Markowitz. His original idea was to create an investment fund that was listed on the world's most popular stock index: the S&P 500 Index.
In 1996, iShares was born and offered ETF portfolios on many European, Asian and American stock indices. iShares is the world's largest ETF, with over 300 options for traders and investors.
The emergence of ETFs has made it easier than ever for retail investors to access ETF portfolios with capital. Today, this SPDRs ETF has become the largest ETF certificate of the more than 170 ETFs in existence in the US with a total value of more than $43.3 billion.
The success of ETFs led the market to create a gold ETF in 2004 called Gold SPDR (GLD).
GLD Products, Source Tradingview
Today approximately $3 billion is traded in the ETF market every day, making it one of the highly liquid markets that compete with Forex. So what if the Forex market also listed ETFs? Is the scale going to get bigger?
How do ETFs work?
Just like stocks, ETFs are listed on a stock exchange. That means traders can buy and sell ETFs while the exchange is open. ETFs also have tickers and intraday prices.
Important Features of ETFs
- The price of the ETF will be displayed in real-time
- Sell and buy at any time during the session
- Can accommodate many financial instruments
- For everyone, not just institutional investors
- Attractive investment option with lower management costs than stocks
Benefits of Investing in ETFs
- Low cost
- Low risk
- Flexible buying and selling
- Artificial Intelligence ETF: PowerShares QQQ ETF CFD (QQQ), Technology Select Sector SPDR Fund ETF CFD (XLK),...
- Dividend ETFs: Vanguard Large-Cap ETF CFD (VM), SPDR Dow Jones International Real Estate ETF CFD (RWX), iShares US Real Estate ETF CFD (IYR), Schwab US REIT ETF CFD (SCHH),.
- ETFs in Vietnam: Gold (GLD) and Silver ETFs (IAU), Real Estate (REITs),...
ETF has its own unique features and benefits. Due to the constant expansion of the financial industry, innovative ideas about the future of ETFs were born. So how is the future of ETFs being realized?
CopyTrading Star and how does it correlate with ETFs?
ETFs are considered long-term, low-risk portfolios. Therefore, it is easy to see the similarities between the CopyTrading Star Contest and ETF certificates.
CopyTrading Star is a contest marking a new turning point in the Forex financial industry. This is a selection to find the best fund managers through the rigorous evaluation criteria of BTC. In addition, investors have to go through the rounds to select and enroll in the final ETF certificate.
The contest has conquered ½ of the way, and is also a great premise for us to issue ETF certificates soon!
FXCE ETF Product - New Era ETF for FXCE Investors
Whether you are an experienced investor or even have little knowledge of the financial sector, you can invest in FXCE ETFs.
What is FXCE ETF Certificate?
As mentioned earlier, ETFs have a diversified portfolio structure of different asset classes, as long as they provide long-term value. At FXCE, Fund Managers can diversify their CopyTrade portfolios (via CopyTrading Star Contest rules) and name their own ETFs.
Example: AAA-ETF Certificate at FXCE has a portfolio (CopyTrade) into 10 different Master accounts, with sustainable returns, and low risk.
New Era of FXCE ETFs
According to statistics (November 7, 2022), 53 accounts invested by FXCE (53 million Cents) brought in profits of up to 2.5 million Cents. In addition, Fund Managers are still managing risks very well now.
Low-risk ETF certificates, long-term returns, and small investments are the key features that FXCE aims for. In addition to the above features, FXCE promises to bring more diversity to the offering of ETFs.
FXCE ETF Certificate is the ultimate goal for you to define “What is a real investment, what is long-term profit value”.
***All details about upcoming ETF products will be announced by FXCE as soon as possible.
Thus, we have gone through the basic benefits of ETF Certificates and the meaning of the CopyTrading Star Contest. This is also the first step for us to create a new era of the Forex financial industry through the upcoming ETF product!
Don't forget, CopyTrading Star is still continuing the journey of an Elite Fund Manager. Join the competition to find the best fund managers.
FXCE CopyTrading Star details 👉 https://go.fxce.com/contest
Register an account: https://www.fxce.com/register