Part 6/10:
For investors who prefer a hands-off approach or are new to investing, ETFs are an ideal choice. They offer diversification across numerous companies with minimal capital:
Index ETFs
Tracking broad indices such as the S&P 500, these ETFs give instant exposure to hundreds of US companies, encapsulating about 80% of the US stock market. This broad diversification reduces risk and provides a steady growth path over the long term.
Local and Sector-specific ETFs
In Singapore, ETFs focusing on the STI or REITs can provide exposure to local growth and income. Considering the current dip due to high interest rates, dividend-focused REIT ETFs may offer attractive yields, especially in a low-tax environment where dividends are untaxed.