Traders can now expand their portfolio and increase their profits with the new additional 30 ETFs at eToro.
eToro Introduces New ETFs for Traders to Expand Their PortfoliosAs the world’s largest social trading network, eToro began as a forex broker for private investors. Today, the trading network attracts up to 4 million investors.
A year ago, eToro grew their CDF and Forex portfolio by adding basic stocks. Now, the broker has grown its ETF, giving traders greater opportunities to expand their portfolio.
Around the world, more and more investors prefer to trade ETFs primarily due to the low costs and low risks involved when compared to managed funds.
Why trade eToro ETFs?
According to eToro, trading ETFs offers a safe, long-term, low risk channel for diversifying your portfolio.
Traders will enjoy several benefits, including:
· Ability to set long-term trading goals
· A chance to profit from emerging markets
· Invest in a wide array of global assets
· Trade with leverage of up to 5 times more
How does an ETF work?
ETFs, also known as Exchange Traded Funds are essentially assets comprising an amalgamation of other assets including indices, bonds, commodities, stocks and more. It is possible to have an ETF comprising of almost any type of asset. This is what makes ETF less risky compared to trading just one stock or a single commodity.
The problem with buying one stock, commodity or any other asset is that the risks of loss are much greater in the event the firm that owns the commodity or stock goes bankrupt.
Other advantages of trading ETFs in general include:
· They can be traded anytime the stock markets are open.
· Affordable compared to buying single expensive assets
· Long-term dividend flow on dividend ETFs
· Diversified risk
Although it is possible to accrue losses on ETFs, it is unlikely that the ETF basket would drop to zero. eToro now allows traders to engage in ETF trading. Given that this is a social trading network, traders can copy other traders’ ETF portfolios.