In collaboration with
iShares by BlackRock, a global leader in ETFs

As you now may know, ETFs may be a great way for beginner and experienced investors to get more involved in the markets. 

We covered how ETFs are essentially a basket of assets that combines the diversification benefits of a mutual fund with the flexibility of single stocks. They offer access to different asset classes, such as stocks, bonds, commodities, and real estate. 

ETFs come with many advantages:

  • Instant diversification: ETFs can hold hundreds of individual securities, exposing you to many markets and asset classes at once and reducing your overall risk.
  • Easy to manage: ETFs are easily bought and sold on an exchange and can be traded at any point during the day. 
  • Low costs: Since ETFs tend to be passively managed, they are typically more cost-effective than actively managed products
  • Tax-efficient structure: ETFs trade less frequently than actively managed funds, resulting in fewer capital gains and taxes for the investor. 

We’ve also explored the different types of ETFs available to invest in, including: 

  • Active and index ETFs
  • Stock ETFs
  • Bond ETFs
  • Commodity ETFs
  • International ETFs
  • Thematic ETFs

Although ETFs offer many benefits, like any investment, there are also potential risks. You learned how to evaluate these risks before investing and how to consider your overall financial goals and risk tolerance when selecting an ETF to invest in.

Building a diversified portfolio with ETFs can help you maintain and even increase the value of your investments over time. As you continue on in your ETF investing journey, remember to stay informed, do your research, and evaluate your strategy regularly. 

With the knowledge you have gained in this beginner’s video course, you’re well on your way to achieving your financial goals and building a successful investment portfolio.

About iShares by BlackRock

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1300+ exchange traded funds (ETFs) and $3.12 trillion in assets under management as of September 30, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

GREAT JOB!

Test yourself on what you have learned

Take A Quiz!

QUESTION 1 OUT OF

What does ETF stand for?

Endowment Trust Fund
Exchange-Traded Fund
Equity Trading Firm

Correct!

Incorrect!

ETFs can be made up of: 

Stocks
Bonds
Commodities
All of the above

Correct!

Incorrect!

ETFs have become popular among investors due to their:

Low fees
Tax efficiency
Diversification
All of the above

Correct!

Incorrect!

How can investors select the right ETFs for their investing strategy?

By considering their investment objectives
By evaluating their risk tolerance
By assessing the ETF’s performance
All of the above

Correct!

Incorrect!

What is the advantage of investing in a single ETF as opposed to individual stocks?

Greater diversification
Higher returns
Higher fees

Correct!

Incorrect!

What is the difference between a passive ETF and an actively managed ETF?

A passive ETF typically aims to track a specific market index, while an actively managed ETF is run by a team of experts who buy and sell investments to try to outperform the market
A team of experts actively manages a passive ETF, while an actively managed ETF seeks to track a specific market index
There is no real difference between the two types of ETFs

Correct!

Incorrect!

What are the differences between an active mutual fund and an ETF?

ETFs trade throughout the day, while mutual funds trade once per day
ETFs typically have lower fees than an active mutual fund
ETFs are more tax-efficient than mutual funds
ETFs offer more transparency, as investors can more easily see where their money is being invested
All the above

Correct!

Incorrect!

Which investment offers more diversification? 

An individual stock
An ETF

Correct!

Incorrect!

Which type of ETF tracks a specific stock index?

Industry ETF 
Currency ETF 
Commodity ETF 
Index ETF 

Correct!

Incorrect!

Which of the following is NOT a factor to consider when selecting an ETF for investment?

Fees
Performance history 
Investment minimums
Expense ratio

Correct!

Incorrect!

Which of the following is NOT a factor to consider when investing in an ETF?

Personal financial goals 
Current market conditions 
Economic indicators 
Celebrity endorsements

Correct!

Incorrect!

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This communication is in collaboration with iShares by BlackRock. BlackRock and iShares are trademarks of BlackRock, Inc. or its affiliates (together “BlackRock”). BlackRock does not sponsor or endorse any content outside the ETF Academy and is not affiliated with eToro or any of its affiliates. 

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation. Any references to past or future performance of a financial instrument, index or packaged investment product are not, and should not be taken as, a reliable indicator of future results. 

eToro encourages its customers to carefully consider the funds’ investment objectives, risks, and charges and expenses carefully before investing. This and other information can be found in the funds’ prospectuses or, if available, the  summary prospectuses which may be obtained by visiting each fund company’s website or www.sec.gov/edgar/search. For iShares Funds, please visit www.iShares.com/prospectus. Read the prospectuses carefully before investing. 

Investing involves risk, including possible loss of principal. Diversification and asset allocation may not protect against market risk or loss of principal. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Transactions in shares of ETFs may result in brokerage commissions and may generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. 

Securities trading is offered by eToro USA Securities Inc., member of FINRA and  SIPC, a self-directed broker-dealer that does not provide recommendations or investment advice. Visit our Disclosure Library for additional important disclosures including our Customer Relationship Summary and order routing information and statistics. FINRA Brokercheck © 2023.