ETFs (Exchange-Traded Funds) remain a popular option for those looking to diversify their portfolios. Whether you’re new to the markets or have investing experience, ETFs provide a way to gain broad or targeted exposure to specific asset classes, sectors, or themes.
On eToro, users can access a wide range of ETFs and explore various investment strategies, including fractional investing and community insights via social trading features.
Below are four ETFs that have attracted attention for their exposure to key market trends and themes:
1. iShares Bitcoin Trust (IBIT)
Sector: Bitcoin & Digital Assets
What it is: IBIT is a trust structure that holds Bitcoin directly, designed to allow investors to track Bitcoin’s price movements without managing private keys or crypto wallets.
Key considerations: IBIT offers a route to digital asset exposure within traditional brokerage accounts. This structure may appeal to investors interested in the crypto market without engaging with crypto exchanges. It’s important to note that Bitcoin remains a highly volatile asset class, and potential investors should understand the associated risks and regulatory context.
2. Global X Robotics & Artificial Intelligence ETF (BOTZ)
Sector: AI & Robotics
What it is: BOTZ provides exposure to companies involved in robotics, automation, and AI development. Holdings include firms engaged in manufacturing industrial robots, developing AI software, and more.
Key considerations: The fund tracks companies that are part of the broader trend toward automation and technological innovation. The value of such exposure depends on a variety of factors including technology adoption rates, competitive dynamics, and economic cycles.
3. Vanguard Total Stock Market ETF (VTI)
Sector: Broad U.S. Equities
What it is: VTI seeks to reflect the performance of the entire U.S. stock market, spanning large-, mid-, small-, and micro-cap companies across various sectors.
Key considerations: This ETF may be used by investors looking for a broad-based representation of U.S. equities. Its diversified nature can be relevant for those seeking a single fund covering multiple segments of the market. Market performance and fund composition will adjust over time in line with U.S. economic conditions and index methodologies.
4. iShares MSCI Eurozone ETF (EZU)
Sector: Developed Europe Equities
What it is: EZU tracks an index composed of large- and mid-cap companies in Eurozone countries, providing exposure to firms from Germany, France, Spain, and others.
Key considerations: EZU may serve as a geographic diversification tool for those with concentrated exposure to U.S. assets. Currency movements, regional policy, and macroeconomic developments within Europe can all influence the fund’s performance.
Tools and Features on eToro
While ETFs are available through many platforms, eToro offers several features designed to support investor decision-making:
- Fractional investing: Gain access to ETF exposure regardless of the full share price.
- Community insights: eToro’s platform includes real-time activity and sentiment from a global user base, helping users stay informed about market trends.
As with any investment, ETFs carry risks. Their value can fluctuate based on market conditions, and factors like liquidity, tracking accuracy, and currency exposure may impact performance. It’s important to understand how an ETF works and consider your financial goals before investing. Make sure to read more about the specific ETF, its structure, and associated risks to make informed decisions.
61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
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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, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.