ETF Investing Strategies  •  Lesson 6 of 6

In collaboration with
iShares by BlackRock, a global leader in ETFs

Lesson 5 of 10

In our advanced ETF course, you learned about some of the many ways that you can use ETFs to enhance different investing strategies. Now, you have the knowledge to take your ETF investing to the next level and build your own portfolio. 

We covered some key ETF investing strategies, including:

  • Income investing
  • Investing during volatility
  • Thematic investing
  • Sustainable investing 

You learned how to potentially generate passive income by investing in certain ETFs, such as bond ETFs and dividend ETFs. These ETFs can provide investors with both regular dividends and capital gains, which can compound over time and provide a steady stream of income. 

ETFs can also offer flexibility during market swings. We covered specific strategies like rebalancing, dollar-cost averaging, and tax-loss harvesting that can help investors navigate volatility. 

Thematic investing can allows investors to tap into emerging trends and industries through low-cost, diversified ETFs. 

With so many different ways to invest with ETFs, there’s bound to be a strategy out there for you. Remember to do research and consider your financial goals and risk tolerance before choosing your ETF. Follow these tips and you’ll be well on your way toward achieving your long-term investment goals.

About iShares by BlackRock

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1300+ exchange traded funds (ETFs) and $3.12 trillion in assets under management as of September 30, 2023, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

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QUESTION 1 OUT OF

How can you potentially earn passive income by investing with ETFs?

Invest in ETFs that pay dividends
Invest in ETFs that have high expense ratios
Invest in ETFs that have low liquidity
Invest in ETFs that are volatile

Correct!

Incorrect!

What are thematic ETFs?

ETFs that track a specific index
ETFs that invest in a specific theme or trend
ETFs that invest in emerging markets
All of the above

Correct!

Incorrect!

What is sustainable investing?

Investing in companies that are environmentally friendly
Investing in companies that are socially responsible
Investing in companies that have good governance practices
All of the above

Correct!

Incorrect!

How can you use ETFs in a long-term investment strategy?

To diversify your portfolio
To generate income
To achieve specific investment goals
All of the above

Correct!

Incorrect!

Which ETFs can help generate passive income?

Bond and dividend ETFs
Stocks ETFs
Commodities ETFs
Thematic ETFs

Correct!

Incorrect!

How can ETFs help investors navigate market volatility?

By offering high costs
By offering limited flexibility
By offering limited diversification
By offering cost-efficiency and flexibility

Correct!

Incorrect!

What are the three key ETF investing strategies during market swings?

Rebalancing, dollar-cost averaging, and tax-loss harvesting
Rebalancing, market-timing, and speculation
Reading market trends, guessing future trends, and trading speculation 
All of the above

Correct!

Incorrect!

What is rebalancing?

Buying and holding ETFs at random 
Reallocating ETFs based on market trends
Reallocating ETFs based on desired asset allocation
Selling and buying ETFs at random

Correct!

Incorrect!

What is dollar-cost averaging?

Investing the same dollar amount at regular intervals
Investing larger amounts during market swings
Investing only when the stock market is high
Selling ETFs when the market is low

Correct!

Incorrect!

What are some examples of themes ETFs can invest in?

Renewable energy
Healthcare
Artificial intelligence 
Clean energy 
All of the above

Correct!

Incorrect!

What does ESG stand for?

Equity-Sharing Globalizing
Environmental, Social, and Governance
Exclusive Spending Growth
Emerging Sustainable Growth

Correct!

Incorrect!

What are ESG ETFs?

ETFs that only invest in environmental stocks
ETFs that only invest in socially responsible stocks 
ETFs that only invest in governance stocks 
ETFs that seek to track indexes that look for companies that meet certain ESG characteristics

Correct!

Incorrect!

Why are ETFs considered low-cost investments?

They have lower management fees compared to other investments
They have higher liquidity compared to other investments
They offer higher returns compared to other investments
They require less research compared to other investments

Correct!

Incorrect!

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This communication is in collaboration with iShares by BlackRock. BlackRock and iShares are trademarks of BlackRock, Inc. or its affiliates (together “BlackRock”). BlackRock does not sponsor or endorse any content outside the ETF Academy and is not affiliated with eToro or any of its affiliates. 

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation. Any references to past or future performance of a financial instrument, index or packaged investment product are not, and should not be taken as, a reliable indicator of future results. 

eToro encourages its customers to carefully consider the funds’ investment objectives, risks, and charges and expenses carefully before investing. This and other information can be found in the funds’ prospectuses or, if available, the  summary prospectuses which may be obtained by visiting each fund company’s website or www.sec.gov/edgar/search. For iShares Funds, please visit www.iShares.com/prospectus. Read the prospectuses carefully before investing.

Investing involves risk, including possible loss of principal. Diversification and asset allocation may not protect against market risk or loss of principal. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Transactions in shares of ETFs may result in brokerage commissions and may generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. 

Securities trading is offered by eToro USA Securities Inc., member of FINRA and  SIPC, a self-directed broker-dealer that does not provide recommendations or investment advice. Visit our Disclosure Library for additional important disclosures including our Customer Relationship Summary and order routing information and statistics. FINRA Brokercheck © 2023.