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Understanding Exchange-Traded Funds
Exchange-Traded Funds (ETFs) are open-ended funds listed and traded on a stock exchange. From diversifying your portfolio, to accessing specific country or sector exposure, discover our list of ETFs that can help meet your investment needs. An inverse ETF is typically synthesized using various derivatives so that its value increases from a decline in the value of an underlying benchmark. A leveraged ETF typically employs derivatives and debt to increase the returns of an underlying index. Leveraged ETFs are available for some indices, such as the Dow Jones Industrial Average. These ETFs aim to maintain a constant amount of leverage such as a 2:1 or 3:1 ratio.
DIVERSIFICATION
Gain exposure to a basket of
securities
ACCESSIBILITY
Access wide range of
sectors and indices
TRANSPARENCY
Retain a clear view of
the ETF holdings
LIQUIDITY
Benefit from ETF's high
liquidity due to their nature
as an index fund to
trade on the exchange
COST EFFECTIVE
Enjoy lower fees on ETF as
compared to other active
and index mutual funds
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ETFs trade both like common equity shares on a daily basis and index funds, which have the benefits of diversification, market tracking and low expenses.
ETFs are like open-ended mutual funds except that they can be bought and sold on an exchange like stocks.
ETFs track a specific index, making it easier to diversify your portfolios by developed and emerging markets; by individual country and global exposure.
Since you can invest in a range of geographies, sectors and styles in a single trade with ETFs, risk can be diversified.
ETFs aim to reflect the performance of an index, which means you know exactly where you are investing in. And because all holdings of the ETF are disclosed, you can see exactly what you hold in a given portfolio, at almost any moment.
ETFs are publicly traded and incur transaction costs and brokerage commissions when trades are done through a broker.
However, ETFs have lower annual expense ratios than most traditional actively-managed funds, and the savings from lower annual fees can help offset management expenses for long-term investors.
ETFs are bought and sold in exactly the same manner as stocks. You can trade during market hours with real-time pricing, so there is no need to open separate trading accounts.
The trading volume is not the same as an ETF's liquidity. Because of their open-ended structure, ETFs are as liquid as their underlying stocks. This is due to the unique creation and redemption process inherent in ETFs.
Disclaimers:Disclaimers:
Securities investments are not bank deposits and involve risks, including the possible loss of the principal amount invested. The price of securities can and does fluctuate; sometimes dramatically, and that any individual security may experience upward or downward movements, and may even become valueless. Therefore it is as likely that losses will be incurred rather than profit made as a result of buying and selling securities. This is the risk that customers should be prepared to accept. Investors investing in securities denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal. Citibank is not recommending the Citibank Brokerage Account or giving any advice in relation to customers' securities investments. Customers will take complete responsibility for any losses resulting from their trading strategy. Investment products and services are not available to U.S. Persons.
The information presented on this site is only to provide a general overview of ETFs and made available for informational purposes only. It does not take into account the specific investment objectives, financial situation and particular needs of any person. Nothing contained on this site should be used or construed as an offer to sell, a solicitation of any offer to buy or a recommendation for any security, nor is it intended as investment, tax, financial or legal advice. Investors should seek such professional advice for their particular situation.
The products and services mentioned above are not offered to individuals resident in the European Union, European Economic Area, Switzerland, Guernsey, Jersey, Monaco, San Marino, Vatican, The Isle of Man or the UK. The website is not, and should not be construed as, an offer, invitation or solicitation to buy or sell any of the products and services mentioned herein to such individuals.
Deposit Insurance Scheme
Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured. For more information, please refer to SDIC's website at www.sdic.org.sg.
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This advertisement has not been reviewed by the Monetary Authority of Singapore.