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ABN AMRO

Investing in ETFs

The easy way to spread your investments

Exchange-traded funds (ETFs) let you spread your investments the easy way. But what exactly is an ETF and how do you choose the right one? Take a deep dive into the possibilities of ETF investing and find out if it is right for you. If all this has got you excited, open an account now and discover popular ETFs from our global range.

Investing involves risk. You could lose all or part of your investment.

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What is an ETF?

ETF stands for ‘exchange-traded fund’, which basically means that it is a fund that is traded on a stock market. When you invest in an ETF, you are effectively investing in a kind of ‘basket’ of shares. This basket generally contains shares in companies that are part of a stock market index, such as the Dutch AEX. It can also, however, be a basket of shares in companies that operate in a certain sector, such as the energy sector.

Frequently asked questions

Pros

  • You simply track the index, without having to buy and sell a lot of investments (and pay the associated fees).
  • You can keep track of the prices of most ETFs from minute to minute and buy and sell most ETFs on an ongoing basis.
  • ETFs offer instant investment diversification.
  • There are ETFs for different investment assets, including shares and bonds.
  • You can invest in sectors or based on specific themes that are otherwise inaccessible to private investors.

Cons

  • ETFs are also exposed to a price risk. If the index that the ETF is tracking goes down, the price of your ETF will also go down. Like with regular investments in shares and bonds, you could lose all or part of your investment.
  • A passive ETF never outperforms an underlying index or basket. With an active investment fund, your investment may do better than the index.
  • No ETF is the same. Some ETFs invest in higher-risk sectors, for example.
  • Some ETFs invest only in a single sector or geographical region, thus increasing the risk exposure.

Companies issue shares to raise funds for new activities and investments. When you buy a share in a company, you become a co-owner of the company.

An ETF (exchange-traded fund) is comparable to an investment fund. It diversifies investments, just like an investment fund does. But a typical feature of an ETF is that it generally tracks an index, such as AEX or Dow Jones, or it tracks the price of a certain ‘basket’ of investments in a certain sector or geographical region. ETFs are also referred to as ‘trackers’.

The difference between ETFs and most investment funds is that an ETF tracks a market index or the price of a basket, while most investment funds try to outperform that index or basket. This is also referred as ‘passive investing’ and ‘active investing’ respectively. Additionally, ETFs are continuously tradable on the stock market, just like shares are. This is an advantage compared to investment funds, which are tradable only once a day at a single share price. What’s more, it takes between two and four working days for an investment fund to process an order.

So buying and selling ETFs is much easier to do, but there is also a downside to that. In volatile markets, the difference between the bid price and the ask price, also known as the bid-ask spread, can become greater, meaning that you may end up paying a higher price for your buy order or receiving a lower price for your sell order.

ABN AMRO

Why are ETFs so popular?

ETFs track a market index. When the index is up or down, or share prices are up or down, the same will apply to the value of the ETF. So the ETF doesn’t try to outperform the market. This is referred to as ‘passive investing’. Generally, this means that product fees are lower than those charged by investment funds. On top of that, ETF investing offers an easy way to spread your investments over multiple shares and bonds.

Why you should choose ABN

No transaction fees

ABN AMRO doesn’t charge a transaction fee when you buy or sell ETFs from the basic range. You will, however, be charged service fees and product fees.

Extensive choice

ABN AMRO can offer you a broad choice of ETFs that invest in global themes, sectors and geographical regions. The basic range alone contains over 200 ETFs.

Free tools and expertise

Make your own investment decisions using our tools and expert opinions, or learn more about investing with this useful step-by-step plan.

More information and terms & conditions

Buying and selling ETFs

You can submit an order to buy or sell an ETF at any time during stock market trading hours, either on Internet Banking or in the Mobile Banking app.

Get started with ETFs in 3 easy steps

  1. Open your Self-Directed Investing account
    Don’t have an investment account yet? To be able to start buying ETFs today, you will need a Self-Directed Investing Basic or Self-Directed Investing Plus account.
  2. Find an ETF that is right for you
    Use our Fund Selector tool to explore and compare our ETFs. Filter ETFs by your preferences and learn more about things such as how the ETF diversifies investments and how its price has developed over time.
  3. Submit your order
    Use the ABN AMRO app or Internet Banking to easily submit your first order.
The fees

Fees affect your returns. Some of the fees charged for an investment product, known as the ‘product fees’, are already incorporated into the product’s price. Other fees, such as service fees, are paid directly to ABN AMRO for the administration of your investment portfolio and for the information we share with you about your portfolio. For full details of all our fees, please see our Self-Directed Investing Basic and Self-Directed Investing Plus cost information sheets.

Self-Directed Investing and the basic range

To be able to buy and sell ETFs, you will need a Self-Directed Investing Basic or a Self-Directed Investing Plus account. Compare these investment options here, or read the full information about our range, the fees and the terms and conditions on the Self-Directed Investing Basic or Self-Directed Investing Plus page.

Basic range
To see our basic range of ETFs, select ‘ETFs without transaction costs’ in the Fund Selector.

The risks

You should only invest money that you don’t need and that is surplus to your buffer for unforeseen expenses  (Dutch website). While investing can be profitable, it also involves risk. You could lose all or part of your investment. and you need to be aware of this. We advise you only to invest in products that match your knowledge and experience.

With Self-Directed Investing, you make your own choices, without advice from us. If you are aware of the risks associated with investments, you will be better able to assess whether you are prepared to expose yourself to those risks and you will avoid any surprises. We have listed the most common risks for you.

Stopping investing

You can stop Self-Directed Investing whenever you wish, either by terminating the service in writing or by letting us know online that you want us to close the account.

More information and terms & conditions

Buying and selling ETFs

You can submit an order to buy or sell an ETF at any time during stock market trading hours, either on Internet Banking or in the Mobile Banking app.

Get started with ETFs in 3 easy steps

  1. Open your Self-Directed Investing account
    Don’t have an investment account yet? To be able to start buying ETFs today, you will need a Self-Directed Investing Basic or Self-Directed Investing Plus account.
  2. Find an ETF that is right for you
    Use our Fund Selector tool to explore and compare our ETFs. Filter ETFs by your preferences and learn more about things such as how the ETF diversifies investments and how its price has developed over time.
  3. Submit your order
    Use the ABN AMRO app or Internet Banking to easily submit your first order.

The fees

Fees affect your returns. Some of the fees charged for an investment product, known as the ‘product fees’, are already incorporated into the product’s price. Other fees, such as service fees, are paid directly to ABN AMRO for the administration of your investment portfolio and for the information we share with you about your portfolio. For full details of all our fees, please see our Self-Directed Investing Basic and Self-Directed Investing Plus cost information sheets.

Self-Directed Investing and the basic range

To be able to buy and sell ETFs, you will need a Self-Directed Investing Basic or a Self-Directed Investing Plus account. Compare these investment options here, or read the full information about our range, the fees and the terms and conditions on the Self-Directed Investing Basic or Self-Directed Investing Plus page.

Basic range
To see our basic range of ETFs, select ‘ETFs without transaction costs’ in the Fund Selector.

The risks

You should only invest money that you don’t need and that is surplus to your buffer for unforeseen expenses  (Dutch website). While investing can be profitable, it also involves risk. You could lose all or part of your investment. and you need to be aware of this. We advise you only to invest in products that match your knowledge and experience.

With Self-Directed Investing, you make your own choices, without advice from us. If you are aware of the risks associated with investments, you will be better able to assess whether you are prepared to expose yourself to those risks and you will avoid any surprises. We have listed the most common risks for you.

The terms and conditions

Stopping investing

You can stop Self-Directed Investing whenever you wish, either by terminating the service in writing or by letting us know online that you want us to close the account.

Looking to buy an ETF? Open a Self-Directed Investing account

Self-Directed Investing Basic

  • Choose from a clear selection of investment funds, shares and ETFs.
  • Invest with low fees
  • Access to useful tools, news and opinions from our experts
  • From € 20

Self-Directed Investing Plus

  • Choose from over 40,000 investment assets traded on stock markets in 22 countries worldwide.
  • Quick order submission and processing on the professional My Dealing Room trading platform.
  • Access to expert opinions and real-time share price information.
  • From € 20

Need help choosing?

If you have difficulty choosing, use our special tool to find out what type of investment is right for you.

Investing involves risks

Investing involves risks. You could lose (some of) the money you invested. If you are going to invest, it is important that you are aware of this. Invest with money you can spare. Read more about the risks associated with investments.

ABN AMRO

All of this got you excited?

More than 200 ETFs

Choose from a diverse range

No transaction fees

Do you need help?

Do you have a question?

Find the answers to frequently asked questions about investing on our service page.

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