eToro startet several years ago as a small forex broker for private investors with the aim to bring financial markets into the average household. Now eToro has become the largest social trading network in the world with nearly 4 million members. One year ago eToro started to extend their forex and cfd portfolio with simple stocks based on cfds, from now on you can trade even ETFs.
ETFs has become more and more popular amongst traders and investors around the world. ETFs have very low costs compared to a managed fund. Secondly ETFs are a quite “safe investment” as they have no leverage.
What is an ETF?
ETF stands for Exchange-Traded Fund. You can imagine an ETF like big basket that contains a certain group of assets: stocks, commodities, bonds, indices and many more. Nowadays there’s almost an ETF for anything. This is why ETF trading is less risky compared to buying a single stock. If you buy a single stock, there’s the possibility of a total loss in case the firm goes bankrupt. An ETF contains many stocks, for example if you buy an ETF on the Dow Jones Index or the S&P 500. It is very unlikely for this ETF to drop to zero, even though you can suffer losses with an ETF as well. You can buy an ETF on commodities, on emerging markets, on dividend stocks – nearly for anything in the world. eToro offers now ETF trading for their investors and other investors can copy their profitable ETF portfolio. Compared to many other certificates ETFs have no knock out level or limited live span – you can buy or sell your ETF at any time.
Advantages of ETFs
- Tradeable at any time as long as stock exchange has open
- Very cheap and flexibel. If you don’t have enough money to buy the single stocks in order to copy a certain index, just buy an ETF on it for little money. Ideal for traders who cannot afford trading futures or expensive stocks
- Buy a dividend ETF in order to profit from a permanent dividend flow
- Distribution of risk: As an ETF mostly track an index, you don’t have a total loss as an index in contrast to a single stock would never fall to zero.
ETFs offered by eToro
These ETFs can from now on traded with eToro:
| Shortcut | Name | Category |
| SPY | SPDR S&P 500 ETF | Large Blend |
| EEM | Emrg Mkts Index MSCI Ishares | Diversified Emerging Markets |
| GDX | Gold Miners ETF Market Vectors | Equity Precious Metals |
| EWJ | Japan Index MSCI Ishares | Japan Stock |
| XLF | Finanzwesen Select Sector SPDR | Financial |
| IWM | Russell 2000 ETF | Small Blend |
| QQQ | Powershares QQQ | Large Growth |
| USO | US Oil | Commodities Energy |
| XLE | Energy Select Sector SPDR | Equity Energy |
| EFA | EAFE Index MSCI Ishares | Foreign Large Blend |
| FXI | FTSE China 25 Index Fund Ishares | China Region |
| RSX | Russia ETF Market Vectors | Miscellaneous Region |
| EWZ | Brazil Index MSCI Ishares | Latin America Stock |
| XLU | Utilities Select Sector SPDR | Utilities |
| GDXJ | Junior Gold Miners ETF Market Vectors | Equity Precious Metals |
| IYR | DJ US Real Estate Ishares | Real Estate |
| XOP | SPDR S&P Oil & Gas Exploration & Prod | Equity Energy |
| XLV | Healthcare Select Sector SPDR | Health |
| UNG | US Natural Gas | Commodities Energy |
| XLI | Industrial Select Sector SPDR | Industrials |
| TLT | 20+ Year Trsy Bond Ishares | Long Government |
| XLK | Technology Select Sector SPDR | Technology |
| XLP | Consumer Staples Select Sector SPDR | Consumer Defensive |
| HYG | Iboxx $ High Yield Corporate Bd Ishares | High Yield Bond |
| XLY | Consumer Discret Select Sector SPDR | Consumer Cyclical |
| GLD | SPDR Gold | Commodities Precious Metals |
| DIA | SPDR DOW 30 ETF | Large Value |
| SSO | Ultra S&P 500 Proshares | Trading-Leveraged Equity |
| IBB | Nasdaq Biotechnology Ishares | Health |
| MDY | SPDR S&P Midcap 400 | Mid-Cap Blend |
ETFs explained
Just open an eToro trading account and start investing in ETFs.