There’s less risk and less work, which compares favorably to buying individual stocks. Besides, an ETF can contain various investments and has an associated price that makes it easy to trade (you can buy and sell it any time you want).

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What opportunities do ETFs present?
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• Allows you to diversify your investments
• Reduces the risks of losses due to mistakes in stock valuation
• Allows you to save time on the selection of individual stocks
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How to choose a sector ETF?

It all depends on the goals of the investor, the investment horizon and risk tolerance.

I suggest looking at traditional ETFs, which are entirely passive and just copy well-known indexes, making a case for a long-term investment. Elsewhere, ESGs are gaining ground, and ESG-related industries could be an attractive investment. As the pandemic unfolded, virtual reality and video gaming came into the spotlight, attracting investor’s interest and money inflows. In my opinion, these sectors could be suitable for a retail investor seeking speculative returns as opposed to passive long-term income. Why not?

Aleksei Potapov, CFA, CIPM
Managing Director of Investment Department