ETFs: Simply brilliantExchange-trade index funds enable you to easily create a broadly diversified portfolio in a cost-efficient manner.
Five reasons for ETF
- Using ETFs you can diversify your portfolio and spread risk.
- They allow you not only to invest in country indices, but, for example, in sectors or different asset classes, too.
- The management fees are modest.
- In the event of bankruptcy by the ETF provider, your capital is protected as special assets.
- Via Börse Stuttgart all ETFs can be flexibly traded from 8 a.m. to 10 p.m.
Tops & Flops
Buy into entire markets
You’re looking for a simple and cost-effective way of creating a broadly diversified portfolio? Then look no further: ETFs are a way of achieving that goal. As a rule, these publicly-listed index funds reflect the performance of the underlying index exactly.
The trick: Using only a few securities you can add entire markets to your portfolio. For example, an ETF can cover the complete equities market in a country with many hundred individual equities or all the shares listed for a certain segment. This principle allows you to create a portfolio diversified internationally that consists in fact of thousands of individual securities. In this way, you spread your capital, and by extension the risk, one way of better compensating for market volatility.
Cost-effective thanks to passive management
The management costs also speak in favor of these products. The fees for ETFs are well below those for actively managed investment funds. Legally speaking, ETFs count as special assets meaning that you the investor carry no issuer risk as the investment company manages the monies separately from its operating income.
As the largest German exchange trading floor for ETFs we offer superlative price quality and the best transaction security. This is ensured by our trading experts who are locked into the electronic trading system. At Börse Stuttgart you can buy and sell ETFs each exchange trading day from 8 a.m. to 10 p.m.