ETF vs Stocks. Which is better for investment? - PowerPoint PPT Presentation

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ETF vs Stocks. Which is better for investment?

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Investing should not be considered as just allocating money to some financial instruments. An exchange-traded fund (ETF) is an investment fund traded on stock exchanges whereas Stocks are a type of equity investments representing the ownership of the company. This PDF consist of top reasons to invest in ETFs or stock markets. Comparing ETFs vs. stocks on the basis of pricing, risk, management, and costs. Get an idea about what are ETFs, Types of ETFs, What are stocks, Types of stocks, How ETFs are better than stocks, and which is better for investment, Source: Kalkine Media – PowerPoint PPT presentation

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Title: ETF vs Stocks. Which is better for investment?


1
ETFs vs Stocks.
iiiiiiiii
  • Which is Better for Investment?

2
Table of Content
  • What are ETFs?
  • Types of ETFs
  • What are Stocks?
  • Types of Stocks
  • How ETFs are Different from Stocks?
  • ETFs vs Stocks. Which is Better?

3
What are ETFs (Exchange Traded Funds)?
4
Types of ETFs
  • Let's look at six common types of ETFs
  • Stock ETFs
  • Bond ETFs
  • Commodity ETFs
  • Industry ETFs
  • International ETFs
  • ETFs to consider for your portfolio this year
  • Vanguard Australian Share ETF (ASX VAS)
  • Beta Shares Commodities Basket Currency Hedged
    ETF (ASX QCB)

5
What are Stocks?
  • Stock is a share in the ownership of a company.
    Stock represents a claim on the company's assets
    and earnings. As you acquire more stock, your
    ownership stake in the company becomes greater.
    Shares, equity, or stock, it all means the same
    thing.

6
Types of Stocks
  • Blue- Chip Stocks
  • Income Stocks
  • Growth Stocks
  • Cyclical Stocks
  • Defensive Stocks

Top ASX stock picks for 2019 Commonwealth Bank
of Australia (ASX CBA), Reliance Worldwide
Corporation Ltd (ASX RWC), Platinum Asset
Management Limited (ASX PTM)
7
How ETFs are Different from Stocks?
  • Risk and Reward

Stocks Individual stocks can have different risk
betas. ETFs An ETF is slightly less risky
  • Tax Implications

Stocks They may or may not give tax benefit
depending upon the type of
stocks. ETFs ETFs are treated like stock
transactions on your tax return, unlike mutual
funds and indexes.
8
  • Liquidity Factors

Stocks Some are very liquid, and others are
not. ETFs ETFs straddle the board, but fewer
ETFs are liquid.
  • Transaction Costs

Stocks Your commissions are based on each
trade. ETFs Your commissions are based on each
trade.
  • Ease of Transaction

Stocks Stocks are easy to buy and sell. ETFs
Exchange traded funds are just as easy to buy,
but unlike an index, its just one
transaction.
9
Etfs vs Stocks. Which is better?
  • So, which is better? Actually, it depends.
  • ETFs give investors mini portfolios that trade
    like stocks. It's important to do your research
    so you can be able to choose a stock or ETF. Keep
    in mind, that the above comparisons are based on
    an individual stock versus ETF. The whole game
    can change if you're considering a custom
    portfolio of stocks versus an ETF.
  • When deciding whether to pick stocks or select an
    ETF, look at the risk and the potential return
    that can be achieved.

10
Ready to invest in stocks or ETFs? Check out all
recent coverage of stock market news and updates
on Kalkine Media. Follow
Kalkine Media
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