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Make the most of limited capital with ETFs

An ETF that holds shares in a large number of companies allows investors to easily create a diversified portfolio, where a single company’s performance does not have an outsized impact on returns 

Yong Jun Yuan

Yong Jun Yuan

Published Mon, Mar 6, 2023 · 05:50 AM — Updated Thu, Feb 22, 2024 · 11:35 AM
    • Owning shares in just a few companies can lead to large swings in portfolio performance.
    • Owning shares in just a few companies can lead to large swings in portfolio performance. PHOTO: BT FILE

    WHEN I was five, I spent my after-kindergarten hours at my grandmother’s place. At about half past five, my uncles and aunts would return from work and interrupt my daily viewing of “Hi-5” to tune in to the Teletext.

    The black screen would display lots of numbers and codes, while names such as “Singtel” and “SIA” would get thrown around a lot.

    When it was my turn to start investing many years later, all I knew was how to buy individual stocks. That led to a mix of good and bad picks, which have taught me some lessons along the way about how companies and markets work.

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