Looking Inside an ETF

January 7, 2021

What is an ETF?

An ETF is a basket of investments that trade as a group on an exchange, similar to a stock. You can buy shares of an ETF in the same way that you buy shares of a company.

What does an eTF offer you?

With an ETF, instead of owning just one investment, you gain exposure to potentially tens or even hundreds of investments—helping you diversify your portfolio with just one trade.

ETFs track a benchmark index

Many ETFs are designed to provide a exposure to a particular benchmark.

The benchmark determines how their performance is judged, typically by an index (e.g. the S&P 500 index)

ETFs can be active or passive

An ETF can be active or passive. Passive ETFs aim to track their stated benchmark to deliver a similar return.

Active ETFs, on the other hand, are managed by an investment team trying to outperform a stated benchmark.

Active ETFs can be more expensive

Generally, passive ETFs have lower fees than active ETFs. This is because passive ETFs have a more “hand off” approach to investing.

With active ETFs, a higher fee pays for the manager to choose investments and trade more frequently
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Crea8’s Advantage

Your portfolio is not achieving its full potential unless you consider all available investments. Crea8 lets you invest in 350 ETFs across a wide range of asset classes, like gold, equities, bonds and private equity.