📦ETFs — exchange-traded funds
How to trade ETFs from basics to expert — fund selection (TER, liquidity), portfolio construction and sector or factor funds.
ETFs — exchange-traded funds — overview
An ETF (exchange-traded fund) is a basket of many stocks or other assets that trades like a single stock. One purchase gives you a stake in dozens or hundreds of companies — instant diversification at low cost. That is what makes ETFs the most popular tool for both long-term and beginner investors: instead of picking individual stocks, you buy a whole index (for example the S&P 500) or an entire sector in one click. When choosing an ETF you watch mainly the expense ratio (TER — the total annual fee, very low on good index ETFs), liquidity (how easily the fund trades), fund size and exactly what it tracks. There are index ETFs (copy an index), sector ETFs (one sector), factor ETFs (selection by traits like value or momentum), dividend and leveraged ETFs. Leveraged and inverse ETFs are a short-horizon, high-risk tool, not for long-term holding. QMA adds a unique angle: a "look-through" score that sees inside an ETF and computes the QMA rating of its actual holdings. You learn not only the fund's cost but also the quality of the companies inside. This section runs from fund-selection basics through portfolio construction to more advanced factor and sector ETFs. This is educational content, not investment advice.
ETFs — exchange-traded funds articles
Leveraged and Inverse ETFs: Why They Are NOT Holding Instruments (Volatility Decay)
The mathematical trap of leveraged (2×/3×) and inverse ETFs: daily reset and volatility decay with a specific example. Why not to hold them long-term and how to manage risk.
How to Choose the Best ETF: 7 Metrics That Matter More Than Past Returns
Most beginners pick an ETF by a single number — its past return. Yet that is the least reliable thing to look at. This practical 7-metric framework shows what really decides an ETF’s quality: cost, what the fund actually holds, size, tracking quality, concentration, overlap and liquidity.