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ETFs - popular, but unclear

Due to their low fees, exchange-traded index funds (ETFs) have enjoyed great popularity for several years. As a result, the range has swelled significantly, with the number of ETFs available worldwide approaching the 10,000 mark. Different focuses and structuring increasingly complicate the overview.

Anyone who wants to get to grips with the asset class should first look at five basic ETF types, which can also be combined with each other.

  1. Stock ETFs are what most investors have in mind when they think of ETFs. The funds usually replicate certain indices such as the DAX or MSCI and follow the price performance one-to-one.

  2. Bond ETFs track the performance of selected corporate or government bonds, such as U.S. Bonds.

  3. Regions ETFs pay attention to the geographic diversification of the portfolio.

  4. Themes ETFs pay attention to trends or industries, such as high technology, medicine, artificial intelligence or sustainability.

  5. Strategy ETFs (smart beta ETFs) bring a dash of active fund management into play by not tracking indices one-to-one, but by applying individual weightings.

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