ETFs: How you can build your assets cleverly and cheaply!

On January 15, 2025, various aspects of ETFs (Exchange Traded Funds) and their providers as well as the price movement of the iShares Stoxx Europe 600 Oil & Gas ETF were discussed. The article by finance.net lists well-known providers of financial products, including DWS, Xtrackers, Amundi, BlackRock/iShares, Vanguard, Fidelity, Franklin Templeton, Invesco, WisdomTree as well as Aberdeen Standard Investments and others. Various benchmarks are also mentioned that may be of interest to investors, such as DAX, EuroStoxx50, MDAX, MSCI Emerging Markets, S&P 500 and Nasdaq 100.

A more in-depth report highlights the asset classes covered by ETFs, including stock indices, alternative investments, money market, real estate, bonds, foreign exchange and commodities. The article also covers the various currencies used in this context, including AUD, CAD, CHF, CNY, EUR, GBP, HKD, JPY, MXN, NZD, SEK, SGD and USD. Investors also have a choice of volume categories and total expense ratio (TER) categories ranging from 0.15% to over 0.75%.

ETFs for long-term wealth creation

How Handelsblatt reported, ETFs are particularly suitable for long-term wealth creation because they track a stock index and are therefore less affected by price fluctuations of individual companies. Choosing the right portfolio plays a crucial role in the return. Cheap online brokers such as Trade Republic and Scalable Capital offer a large selection of ETFs and are particularly relevant for small savers. These can use various index funds, such as DAX ETFs, which will be expanded to 40 companies from September 2021.

The diversification achieved by ETFs reduces the risk of investing. A well-known global index in this context is the MSCI World, which tracks over 1,600 companies worldwide. ETFs are passively managed and are characterized by lower management costs and high transparency. Statistics show that actively managed funds often do not outperform the market.