x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message

How to Invest in an ETF?

Updated on 23 Feb 2020

According to the research firm ETFGI, there are now as many as 5,000 ETFs trading globally, with more than 1,750 of these based in the U.S. Choosing from this vast pool can be daunting, so here’s a step-by-step guide to help you choose the perfect ETF for your first investment!

Introduction
How to invest in an ETF?
How to choose the right ETF for your needs?
Step 1: Identify Goals
Step 2: Choose a Comfortable Term Period
Step 3: Identify Your Risk Appetite
Step 4: Choose an ETF
Need Help? Ask an Expert!

Introduction

Exchange traded funds (ETFs) have emerged as one of the most popular and reliable forms of investments available in the market. These funds track well-performing indexes and offer returns that match them. ETFs typically contain securities that can range from stocks, bonds, commodities, or even a mix of them all, making them great options for investors who want a diverse portfolio. If you’re planning to grow your wealth in way that lets you regulate your exposure to risk, ROIs, and even the level of diversification that your portfolio has, then you should definitely invest in ETFs.

In this article, we’ll tell you everything you need to know about how you can go about buying ETFs and growing your wealth!

CHECK OUR TRENDING ETFs HERE!

How to invest in an ETF?

One of the things that makes ETFs easy to invest in is the fact that they are listed on the Stock Exchange and can be bought and sold in the same way stocks typically are. This means that you can trade in ETFs through any online broker or traditional dealers.

How to choose the right ETF for your needs?

Before you begin investing in ETFs, you must be able to identify the right ETFs for your needs. One of the best ways to do this is by analyzing your goals and basing your decisions on the same. As a novice investor, the ideal of establishing goals that are set way ahead in the future might be a bit daunting, but all it takes is a little bit of self reflection and an honest understanding of what you want in life.

Step 1: Identify Your Goals

Start by envisioning the life you want to lead. What do you picture? Are you debt-free? Retired? Do you wish to travel the world? Treat these dreams as very real goals and you’ll find that you’re able to achieve them all. To get you started, we’ve listed down a few examples of common goals that people identify:

  • To save enough money to facilitate one’s child’s education abroad
  • Pay off mortgages or loans taken on property
  • Be able to retire at an early age
  • To start your own company
  • Clear any existing debts such as medical bills, education loans, and so on
  • Travel the world without any financial hindrances

Once you’ve identified your goals, you must then estimate the funds you need in order to achieve them. For some goals, this is relatively simple. For instance, if you have a pending student loan of $ 20,000, you are clear about the sum you need to be free of debt. On the other hand, if you want to travel the world, you must jot the average cost of flight tickets, accommodation, food and miscellaneous expenses, account for inflation, and then come up with a number that represents what you will really need.

Step 2: Choose a Comfortable Term Period

After all this, you must then set yourself a timeline to achieve the goal. You might want to retire by 40, or buy a home by the time you hit your 30s. With this, you’ll have a basic idea of the term period that you are comfortable with.

Step 3: Identify Your Risk Appetite

We believe that an investment that makes you sweat at night isn’t something that’s worth your time. Ultimately, every investor is comfortable with different levels of risk, and this is something that must drive their decisions. It is also important to understand that low-risk ETFs also offer a lower yield when compared to high-risk investments, and you may have to either adjust your expected ROI or term period to meet your goals.

Step 4: Choose an ETF

Finally, you need to then identify the ETFs that offer the returns you expect in the term period you would like to invest for. You must go through the past performances of the ETF, understand market conditions well enough to feel confident about investing in it, and be quick-witted enough to predict market conditions that may just cause your stocks to plummet. Then, and only then, can you actually pick an ETF to invest in.

CHECK OUR TRENDING ETFs HERE!

How to Invest in ETF – Ask the Experts!

At Kristal.AI, our experts have decades of experience. We are able to conduct astute predictive analysis and accurately identify the right ETFs for your needs. What’s more, our superior AI enabled recommendations help us narrow down the best possible ETFs for goals, risk appetite, and chosen term period. Through this, we are able to tell all our clients about the perfect investment avenues and all they have to do is sit back, relax, and watch their money grow.

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

Proceed as Private Wealth

THEMATIC STRATEGIES

Enabling clients to invest in trending themes like FAMANGThe FAMANG Kristal invests in Facebook, Apple, Amazon, Netflix and Alphabet’s Google stocks. Assets are carefully chosen by an algorithm in order to deliver a superior returns based on past performance. The strategy is rebalanced every quarter., TECHGlobal Technology ETFs is a genetic algorithmic strategy focussed specifically on the Technology sector., ESGProvides exposure to higher rated environmental, social, and governance (ESG) companies while accessing large- and mid-cap stocks in Europe, Australia, Asia and the Far East., etc. with a single click or just create your own thematic basket.

Future-proof your portfolio and capture emerging investment themes.

OVERVIEW

Explore and Identify

Select from a range of expertly designed trending and diverse themes

Efficient Execution

Enabling easy exposure to your preferred themes without the hassle and costs of individual security selection and execution

Only the Best

A ready-made collection of Kristals that derive the best of the specific asset class or theme

Unique Mix

An optimised blend of ETFs and individual counters, enhancing efficiency and profitability

Contact our Relationship Manager
ALTERNATIVE INVESTMENTS

Diversify your portfolio with exclusive Private Equity, Pre-IPO deals, VC Funds & other investments like Bitcoin, Gold, Hedge Funds and many more.

Kristal fractionalizes difficult-to-access deals and opportunities.

OVERVIEW

Instant Access

A wide range of alternative asset classes such as Gold, Bitcoins, Hedge Funds and many more; readily made available

Risk Management

Enables investments in diversified assets hence spreading the risk

Easy Tracking

Enables you to get a consolidated view of investments in all assets at one place, hence facilitating easy monitoring and tracking

Exclusive Deals

Access to exclusive Venture Capitalist, Startup as well as pre-IPO investment opportunities

Low Investment Tickets

Facilitates fractionalization of investments in deals

Contact our Relationship Manager
FUNDS PLATFORM

Professionally managed funds with active investment strategies, screened for you by our investment committee to diversify your portfolio.

Enabling clients to access exclusive investment strategies.

View Funds

OVERVIEW

Access

Provides Access to Professional Fund Managers

Low Investment Tickets

Facilitates fractionalization of investments in funds

Diversity

A wide spectrum of investment strategies ranging from Arbitrage to Credit to Hedge Funds and many more

Fees

No additional costs are charged by Kristal.AI

Exceptional Performance

Funds with an impressive track record and potential for high profitability

Leverage

Benefits from insights of the expert selection and advisory team

Easy Management

No time consuming management of portfolios

Contact our Relationship Manager
TAILOR-MADE PRODUCTS

Customize products based on your market outlook and specific needs across equities, bonds, gold and more.

For investors looking to enhance portfolio yield based on market views.

OVERVIEW

Enhanced Earnings

Structures with potential to enhance portfolio yield based on market movements

Customization

Product features can be designed to articulate investor views

Fees

A flat and transparent fee structure like nowhere else

One-Click Access

A single feature ‘Ideas’ enables you to access recently launched and trending market opportunities

Contact our Relationship Manager
BUILD YOUR OWN KRISTAL

Can’t find what you are looking for? Create your own exclusive investment strategy with risk management & periodic reporting.

For seasoned investors who prefer to design their own portfolio.

OVERVIEW

Empowered Investing

Enables clients to create their own custom portfolio based on their unique needs

Unlimited Choice

Access to all possible exchange traded assets

Flexible Management

Flexibility in delegating the portfolio management role to us or actively taking up the day to day investment decisions, in your custom Kristal

Custom Fee Structure

A simple, transparent and a customized fee structure

Access to Expertise

Custom performance reporting as well as advisory support

Contact our Relationship Manager