(Boursier.com) — The AND F (Exchange Traded Funds) Or trackers are financial products that follow the variations of a stock market index (Nasdaq, CAC 40, etc.). An ETF can be invested in stocks or bonds. The choice of investment is wide: French or foreign securities, representative of a sector of activity, a market, etc. It is therefore a good way to diversify your savings!
Among the many ETFs, selection criteria should be applied: First, the investor will choose a benchmark index. For example, theS&P500 is a reliable index suitable for investing in US stocks. On this side of the Atlantic, theStoxx 600 is also a good index, particularly broad and liquid, to position oneself on large European companies…
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Management fees, although relatively low, should also be considered carefully and vary from ETF to ETF… Tracker brokers also have different characteristics: level of brokerage fees, seniority, location, investor profile (experienced or not), etc. Before making your choice, select the best online stock broker using a comparator!
Remember that an ETF is a medium that presents risks of capital loss. Regarding investment maturities, equity ETFs are naturally aimed at investors who wish to invest their money for the long term. If you have a short-term objective, excluding speculation, it is preferable to opt for bond ETFs whose price is much less volatile.
ETFs can be invested in various vehicles that determine their taxation. In the same way as funds in euros, ETFs can be taken out on an ordinary securities account, life insurance, a PEA (for certain ETFs) or a PER (retirement savings plan).
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