1. Define Your Investment Goals and Assess Your Risk Tolerance

Depending on whether you are opting in for growth, income or diversification, you can find a suitable ETF product to meet your goals.

2. Evaluate ETF Characteristics

When evaluating ETF characteristics, consider the following key factors to make informed investment decisions.

1. First, take a look at the expense ratio. Lower fees directly enhance your net returns by reducing the cost of investing.
2. Next, consider the tracking difference
3. Liquidity is vital; ETFs with higher average daily trading volumes are easier to buy and sell, reducing liquidity risk. This liquidity can also be inferred from the fund size, as larger funds tend to be more liquid.
4. Do you want to invest one time, or do you want to use the opportunity to open a savings plan and invest monthly?

By carefully assessing these characteristics, you can select ETFs that align with your investment strategy and goals.