SINGAPORE – Media OutReach – August 4, 2023 – Phillip Nova offers ETFs without a platform or custody fees. Users can access over 11,000 ETFs, growth and dividend-yielding stocks from Mainland China, Hong Kong, Malaysia, Singapore and US markets.
ETFs: what are they and how do they work?
ETFs are exchange-traded funds, which are bought or sold on stock exchanges like common stocks. ETFs are a type of pooled investment security that hold multiple underlying assets. It generally tracks or replicates the performance of a specific benchmark. It allows investors to invest in a basket of securities in a single transaction.
ETFs: a good choice for beginners
Simplicity
Investing in ETFs saves time by
eliminating the need for a single stock picking, which is a very time-consuming process as you have to constantly monitor news, earnings releases and company finances.
Investors can rest assured that they will approximate market returns, eliminating the need to constantly monitor individual stock positions. In addition, when a constituent is removed from the index, the ETF does the same. Thus, there is a
low barrier to entry for new investors, as less knowledge of the market is required. ETFs ultimately offer investors a convenient and simple way to invest in the stock market.
Diversification
By investing in a basket of shares, it helps to reduce
company-specific risks such as management decisions, financial health and corporate scandals. Investors can gain exposure to multiple companies, as well as stocks from different asset classes, sectors and geographic markets.
Different types of investors and ETFs suited to their consideration
Ultimately, the choice of investment will depend on the investment goals of the investors. Here are examples of some of the ETFs offered by Phillip Nova:
Dividend hunters:
Dividend hunters are individuals who are looking for another source of income. The investment priority is to achieve a steady, passive stream of income to supplement the main source of income from day-to-day work. Here are the appropriate high-yield income-generating ETFs:
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Vanguard Dividend Appreciation ETF (VIG)
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Lion-Phillip S-REIT ETF (CLR)
Stable builders:
Stable builders are individuals who want to avoid “putting all eggs in one basket” and prefer to invest for the long term while diversifying the portfolio across different asset classes, sectors and geographies; but have little time and financial knowledge to choose an ETF. Here are the appropriate high-yield income-generating ETFs:
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SPDR Straits Times Index ETF (ES3)
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Vanguard S&P 500 ETF (VOO).
Tips for Successful Investing with ETFs
ETF investors should strive to minimize any overlap in their holdings. For example, rather than owning three different ETFs that all track the S&P 500, it would be better to consolidate all three into one ETF, preferably the fund with the lowest expense ratio.
Examples of successful diversification with ETFs
Successful investors often hold different types of ETFs (asset class, sector, geography, etc.) to diversify, reduce risk and maximize profits. For example, investors can include a Gold ETF such as SPDR Gold Shares (GLD) in their portfolio to protect against a downturn. Gold has never correlated with the stock market and generally thrives during a recession.
To see the full selection of ETFs recommended to build the 6% dividend yield portfolio,
download a game book
here.
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The issuer is solely responsible for the content of this announcement.
