​Watch IG's Top Picks for Investing in Global ETFs

Exchange Traded Funds (ETFs) have emerged as a preferred investment option for both seasoned investors and newcomers alike. With an ever-growing variety, including passive and actively managed funds, they cater to different risk profiles. Here's a detailed guide to help you explore the best global ETFs and why they are gaining immense popularity.

What Are ETFs？

ETFs, or Exchange Traded Funds, are investment funds traded on stock exchanges, akin to individual stocks. They offer you an opportunity to invest in a 'basket of securities related to a specific sector or investment strategy without purchasing individual assets.

Investing in an ETF provides diversified exposure, flexibility, and trading liquidity similar to equity, instead of the rigidity found in mutual funds. Additionally, ETFs typically come with low expense ratios and lower broker commissions.

Why Invest in ETFs？

In today's uncertain economic climate, with elevated inflation and potential recession looming, the diversification offered by ETFs appears more attractive to investors. ETFs can contain a blend of investments, such as stocks, commodities, and bonds. Actively managed ETFs, though usually more expensive, are available along with the favored passive funds.

Some key advantages of ETFs include:

• Diversification: Ability to spread risk across various sectors or companies.

• Cost-Effective: Lower expense ratios and brokerage fees.

• Liquidity: Can be bought or sold during trading hours like individual stocks.

• Risk Management: Suitable for different risk appetites, from conservative to aggressive investors.

Top Global ETFs to Keep an Eye On

1. iShares Core S&P 500 ETF: A widely accessible S&P 500 tracker for UK investors, this ETF follows the performance of the US S&P 500 index, encompassing market giants like Apple, Tesla, and Microsoft. With a low expense ratio of 0.03%, it is an attractive option for long-term investors.

2. ROBO Global Artificial Intelligence ETF: Concentrating on innovative areas like AI, robotics, and automation, this ETF includes businesses at the forefront of technological growth. Investing in 80 companies, it has shown impressive returns, comparable to S&P 500.

3. iShares UK Dividend UCITS ETF: This ETF offers exposure to top dividend-yielding UK companies within the FTSE 350, such as British American Tobacco, Rio Tinto, and HSBC. Investors seeking reliable dividend returns may find this ETF attractive.

4. ARK Innovation ETF: Gaining fame during the pandemic, this actively managed ETF from Cathie Wood focuses on growth-driven assets such as Tesla and Coinbase. With a 53% rebound in 2023, its 0.75% expense ratio seems justified.

5. Procure Space ETF (UFO): Investors interested in space technology and commercialization can look at UFO. It tracks the S-Network Space Index, comprising major satellite and defense companies, though it does carry a higher-than-average 0.75% expense ratio.

IG: An Aid to Your ETF Investment

Investment platform IG offers an ETF screener to inform your investment decisions and keep you updated on the latest trends in the ETF market.

Conclusion

Exchange Traded Funds (ETFs) present an efficient way to diversify your investment portfolio, aligning with various risk profiles and investment objectives. From tracking major market indices to focusing on specific sectors like technology or dividends, ETFs offer a broad spectrum of options.

Whether you're a seasoned investor or just starting, exploring the world of ETFs with platforms like IG can provide an enriching investment experience. Remember, while ETFs offer various benefits, they will perform as well as their underlying constituents, and a thorough understanding of the specific ETF's structure, expense ratio, and associated risks will ensure a more informed investment decision.

For more information and to stay updated, consider downloading the WikiFX App on your smartphone and visiting the official pages of brokers like IG in WikiFX's dealer section.

Download the App here: https://www.wikifx.com/en/download.html

Link to IG's official page on WikiFX: https://www.wikifx.com/en/dealer/0001473583.html

Happy investing!