Level up your ETF investing in 8 easy steps
3 minutes reading time
While there is a lot of information about ETF investing available, it can be challenging to sort through everything to find the information you need.
In order to cut through the noise, we have launched a free educational course, Betashares explains: ETFs.
We provide expert tips about ETFs covering topics like different investing strategies, how to compare ETFs, and performance tracking.
Each lesson in this bite-sized series covers the essentials of ETF investing and is made up of an easy-to-consume video and article – or you can sign up to receive each lesson via email.
In lessons 1 to 3, we cover the basics and explain exactly how ETFs work. We also outline some of the reasons why more and more Australian investors are turning to ETFs to help them achieve their financial objectives.
To explain some of the technical aspects of ETFs, we take you ‘behind the scenes’ of when you buy or sell ETF units and explain the ins and outs of how they are bought, sold and priced.
You’ll also learn how to check if an ETF is trading at its net asset value (NAV).
An ETF’s NAV may sometimes differ from its market price, which is the price at which investors can buy and sell an ETF on the exchange.
This is most likely to occur when markets experience significant volatility, including at the start and end of the trading day.
With this in mind, you will learn the ideal time of day to buy ETFs.
Diving deeper into lessons 4 to 7, we cover more advanced aspects of ETF investing. To start, we take a closer look at the types of ETFs on offer and how to choose ETFs that suit your investing goals.
Did you know that ETFs not only give investors access to markets that would otherwise be hard to invest in, but can help cut down on time consuming paperwork?
Never heard of a W8-BEN form? Doesn’t matter! If you invest in the US via an Australian domiciled ETF, you don’t need to complete one. We can’t say the same for those buying direct US shares though.
Further into the course, you will learn three key questions to ask yourself to narrow down your decision when it comes to selecting an ETF.
We will let you in on the first question to ask yourself: what are you hoping to achieve by investing? Investing can help people reach their goals, but in order to do so, it’s important to define them first. Check out lesson 5 to learn the other two questions.
And to ensure you are keeping track of your ETF performance, you will also learn the key considerations for reviewing how much your portfolio has gained or lost over time.
Lastly, in lesson 8 we summarise the top 10 course takeaways that you can take with you on your ETF investing journey.
Annabelle Dickson was previously a journalist at Financial Standard and prior to that at The Inside Investor and The Inside Adviser. She holds a Bachelor of Arts in Communication (Journalism) from The University of Technology Sydney.Read more from Annabelle.