Money & WorkFact

Own a piece of 1,000+ companies with €25.

An ETF is an exchange-traded fund that replicates an index instead of picking individual stocks. Buy one share of an ETF tracking a world index and you hold tiny slices of over 1,000 companies in more than 20 countries. No manager makes decisions, so ongoing costs are often below 0.3% per year. Shares trade on the exchange any time.

Useful: An ETF makes broad diversification possible even with small amounts.

Source: de.wikipedia.org

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Question on this card

What does an ETF do?

Picks the best stocks
Replicates an index
Guarantees a fixed return
Invests only in bonds

Show the answer

Correct: Replicates an index

An ETF passively copies an index without active selection.

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