Different types of ETFs – ETFs simplified | iShares - BlackRock (2024)

Source:

1 Global Business Intelligence, BlackRock, as of 31 May 2021.

2 Diversification does not fully protect you from market risk and does not guarantee returns or eliminate potential for loss.

3 The value of each series of securities will be affected by movements in the price of the commodity to which a particular series of securities is linked, as well as the price of commodities in general, market perception, the creditworthiness of certain Transaction Parties and liquidity of the securities in the secondary market.

4 A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security.

5 Counterparty risk is the risk that the counterparty to a derivative could be unable or unwilling to perform its payment obligations.

6 Hedging is a risk management strategy employed to offset losses in investments.

7 Currency hedging is sometimes done as part of a fund’s main investment strategy or within share classes. Currency hedged share classes and funds use derivatives to hedge currency risk. The use of derivatives for a share class could pose a potential risk of contagion (also known as spill-over of risk and liabilities) to other share classes in that fund.

8 With leveraged products, both gains and losses can be magnified. Therefore, the risk of loss may be substantially more than a fund that does not employ leverage. Inverse products track the daily performance of a multiple of the inverse index return. If the value of the index increases, it could have a negative impact on the performance of that product.

This material is prepared by BlackRock (Singapore) Limited (co. registration no. 200010143N) for informational or educational purposes only. This does not constitute an offer or solicitation to purchase or sell in any securities or iShares Funds, nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

There are risks associated with investing, including loss of principal. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investments in a developed country. Investors should be aware that the price of shares of the iShares Funds, and the income from them (if any), may fall as well as rise, and investors may not get back their original investment. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. iShares Funds are not sponsored, endorsed, issued, sold or promoted by their index providers. For details of the index provider including any disclaimer, please refer to the relevant iShares Fund offer document.

This material contains general information only and is not intended to represent general or specific investment advice. The information does not take into account your financial circ*mstances. An assessment should be made as to whether the information is appropriate for you having regard to your objectives, financial situation and needs. Before investing, you should carefully consider the investment objectives, risks, charges and expenses and all other information contained in the relevant offering documents which is available from BlackRock or the iShares websites.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

The opinions expressed are as of October 2021 and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or distributed without the prior written consent of BlackRock.

The information provided here is not intended to constitute financial, tax, legal or accounting advice. You should consult your own advisers on such matters.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

© 2021 BlackRock Inc. All rights reserved.

MKTGH1023A/S-3173713

Different types of ETFs – ETFs simplified | iShares - BlackRock (2024)

FAQs

Different types of ETFs – ETFs simplified | iShares - BlackRock? ›

Smart beta, factor-based, and fundamental ETFs

Track an index based on a strategy other than a traditional market-cap-weighted index.

What are the three types of ETFs? ›

Smart beta, factor-based, and fundamental ETFs

Track an index based on a strategy other than a traditional market-cap-weighted index.

How many ETFs does BlackRock have? ›

BlackRock has 433 ETFs listed with a total of 2,859.33B in assets under management, which makes BlackRock the biggest ETF provider on the U.S. stock market. The funds have an average expense ratio of 0.30%.

What are ETFs simplified? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

How many ETFs should I own as a beginner? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

How to choose ETFs for beginners? ›

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.

What is the 3 ETF strategy? ›

A three-fund portfolio is a portfolio which uses only basic asset classes — usually a domestic stock "total market" index fund, an international stock "total market" index fund and a bond "total market" index fund.

Which BlackRock fund is best? ›

Best BlackRock Mutual Funds for the Long Term
  • BlackRock Total Return MPHQX.
  • BlackRock Strategic Income Opportunities BSIIX.
  • BlackRock Strategic Global Bond MAWIX.
  • BlackRock High Yield Bond BRHYX.
  • BlackRock LifePath Index Target-Date Series.
  • BlackRock Technology Opportunities BGSIX.
  • iShares S&P 500 Index WFSPX.
Apr 24, 2023

What is EFT in BlackRock? ›

An exchange-traded fund (ETF) is a collection of assets that trades on an exchange. ETFs are a diversified and low way to invest.

Are BlackRock and iShares the same? ›

INVESTORS DESERVE CHOICE

The breadth of our ETF range makes it convenient to invest for the long term, seek to minimize risk, and match financial goals with personal beliefs. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere.

What is the downside of ETFs? ›

For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.

What is the best ETF to buy right now? ›

The best ETFs to buy now
Exchange-traded fund (ticker)Assets under managementExpenses
Vanguard Dividend Appreciation ETF (VIG)$76.5 billion0.06%
Vanguard U.S. Quality Factor ETF (VFQY)$333.3 million0.13%
SPDR Gold MiniShares (GLDM)$7.4 billion0.10%
iShares 1-3 Year Treasury Bond ETF (SHY)$24.4 billion0.15%
1 more row

Can you sell ETFs anytime? ›

Trading ETFs and stocks

There are no restrictions on how often you can buy and sell stocks, or ETFs. You can invest as little as $1 with fractional shares, there is no minimum investment and you can execute trades throughout the day, rather than waiting for the NAV to be calculated at the end of the trading day.

Can you retire a millionaire with ETFs alone? ›

Investing in the stock market is one of the most effective ways to generate long-term wealth, and you don't need to be an experienced investor to make a lot of money. In fact, it's possible to retire a millionaire with next to no effort through exchange-traded funds (ETFs).

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income.

Is 10 ETFs too many? ›

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

What type of ETF is best? ›

Two of the most popular ETFs include index funds based on the Standard & Poor's 500 index and the Nasdaq 100 index, which contain high-quality businesses listed on American exchanges: Vanguard S&P 500 ETF (VOO), with an expense ratio of 0.03 percent. Invesco QQQ Trust (QQQ), with an expense ratio of 0.20 percent.

What is the difference between a bond ETF and a money market ETF? ›

Bond (and bond fund) yields are typically higher than money market funds. While the spread between bonds and money market funds is narrower today than it has been historically, investors are receiving more income from bonds. Bonds will appreciate if interest rates fall.

What type of ETF is Voo? ›

Vanguard S&P 500 ETF is an exchange-traded share class of Vanguard 500 Index Fund. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index.

What are the three levels of ETF liquidity? ›

There are three levels of liquidity to consider for ETFs: on-screen liquidity, broker-assisted liquidity and specialist-accessed liquidity.

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