Where Can I Buy ETFs and Start Investing Today

You can buy ETFs from a variety of places, including online brokerages and investment platforms.

Some popular online brokerages that offer ETFs include Fidelity, Vanguard, and Charles Schwab. These platforms allow you to buy and sell ETFs online or through their mobile apps.

TD Ameritrade and E\*TRADE are also online brokerages that offer ETFs, making it easy to get started with investing.

Many of these platforms have low or no fees for buying ETFs, which can help you keep more of your money.

An ETF, or Exchange-Traded Fund, is a basket of securities that's traded on stock market exchanges, just like any other stock. It's essentially a way to own a portion of thousands of underlying stocks or other assets, such as bonds or commodities.

ETFs have lower fees compared to mutual funds, and they also have tax advantages. This is because ETFs are designed to be more transparent and liquid.

As Curtis Bailey, a CFA and financial advisor, explains, an ETF is an ownership structure that allows you to own a portion of an underlying basket of securities.

Investing in ETFs is typically easy and can be done through a brokerage account by placing a buy or sell order, just as you would for other stocks. You can access a range of ETFs, including active equity, fixed income, thematic, and sustainable options.

Most online brokerage accounts and investing platforms offer ETFs, but not all do, so make sure to do your research before signing up. Beginners may have the best luck accessing ETFs with a robo-advisor or a beginner-friendly investment app.

The largest ETFs often have really low fees, but some ETFs have higher expense ratios than actively managed mutual funds. The exchange price of an ETF typically reflects the underlying value of the securities the fund holds, but tracking errors could lead to a small discrepancy between the ETF's price and the value of the underlying assets in some cases.

Some popular ETFs with low operating expense ratios (OERs) include the Schwab 1000 Index ETF (SCHK) with an OER of 0.05%, and the Schwab High Yield Bond ETF (SCYB) with an OER of 0.03%.

Investing in ETFs is typically easy, and you can buy and sell them through a brokerage account by placing a buy or sell order, just as you would for other stocks.

Most online brokerage accounts and investing platforms offer ETFs in some capacity, but not all investing apps and brokerages do, so make sure to do your research before signing up.

Beginners may have the best luck accessing ETFs with one of the best robo-advisors or the best investment apps for beginners.

You can also use online screeners and your brokerage's trading function to find ETFs that fit your investment goals.

ETFs are typically more tax-efficient and lower cost than mutual funds and offer diversification that would be hard to mimic through individual positions.

Consider how the particular ETF could impact your portfolio and how it compares to other types of funds before making an investment decision.

To get started, you can select from a range of ETFs including active equity, fixed income, thematic, sustainable, and more.

Here are some examples of ETFs available from Schwab:

Schwab offers a range of ETFs with low operating expenses, including their market cap ETFs and Fundamental Index ETFs.

You can trade online in your Schwab account with $0 commissions on over 3,000 U.S. exchange-listed ETFs.

ETFs don't have some of the costs associated with mutual funds, such as 12b-1 fees or sales loads.

However, costs could be higher if you compare ETFs to investing in a specific stock, as stocks do not have a management fee.

Some of the top pros of ETFs include their potential to provide diversification, tax efficiency, and lower costs.

Here are some examples of ETFs available from Fidelity:

When choosing an ETF, consider the benefits of investing in ETFs, such as their potential to provide diversification, tax efficiency, and lower costs.

When buying a mutual fund, you'll often face higher investment minimums compared to ETFs.

Mutual funds typically have fees and expenses that are higher than those of ETFs.

You won't know the exact price of a mutual fund until after the market closes, when the Net Asset Value (NAV) is calculated.

Mutual funds can be less tax efficient because you'll realize capital gains when the fund itself sells assets, regardless of whether you've sold your shares.

Mutual funds hold a basket of securities, but unlike ETFs, they're not traded on stock exchanges.

Mutual funds are priced once per day after the market closes, based on the underlying security prices.

They often have higher initial minimum investment requirements and fees than ETFs.

Mutual funds can hold advantages over ETFs, like sometimes being easier for buying fractional shares.

The fund manager acts as a guaranteed trade partner, eliminating the bid/ask spread.

This can provide greater liquidity for investors.

It's essential to look at the specific details for any fund you're considering, as mutual funds and ETFs are not interchangeable terms.

You should not assume that mutual funds are always actively managed, as they can also be index funds.

Communication Services is a popular ETF category that tracks the performance of specific industries.

The Fidelity MSCI Communication Services Index ETF, also known as FCOM, is a well-known example of this category.

It tracks the performance of the MSCI USA IMI Communication Services 25/50 Index.

This means that the ETF's value will rise and fall along with the companies in the index, giving investors a way to gain exposure to the communication services sector.

The index itself is made up of 25-50 of the largest and most liquid stocks in the US communication services market.

Investors can use FCOM to gain broad exposure to the communication services sector, which includes companies like phone and internet providers, media companies, and software firms.

Consumer Staples are a crucial part of a diversified investment portfolio.

The FSTA Fidelity MSCI Consumer Staples Index ETF tracks the performance of the MSCI USA IMI Consumer Staples 25/50 Index.

Investing in Consumer Staples can provide a steady income stream through dividend payments.

Fidelity MSCI Consumer Staples Index ETF is a low-cost way to gain exposure to this sector, with a low expense ratio of its underlying index.

Consumer Staples include companies that provide essential goods and services, such as food, beverages, and household products.

The MSCI USA IMI Consumer Staples 25/50 Index is a benchmark for this sector, providing a diversified portfolio of large and mid-cap stocks.

Investors can use Consumer Staples ETFs as a hedge against market volatility, as these companies tend to perform relatively well during economic downturns.

By investing in Consumer Staples, you can gain exposure to a stable and growing sector of the economy.

Investing in the Information Tech sector can be a great way to diversify your portfolio.

The Fidelity MSCI Information Tech Index ETF (FTEC) tracks the performance of the MSCI USA IMI Information Technology 25/50 Index.

This means that FTEC holds a basket of stocks that represent the largest and most liquid companies in the Information Tech sector.

The Fidelity Cloud Computing ETF (FCLD) invests in companies enabling the increased adoption of cloud computing characterized by the delivery of computing services over the internet.

These companies are at the forefront of the tech revolution, providing essential services to businesses and individuals alike.

Investing in FCLD can provide exposure to this growing trend, potentially offering long-term growth and stability.

Investing in materials ETFs can be a great way to diversify your portfolio. The Fidelity MSCI Materials Index ETF, for example, tracks the performance of the MSCI USA IMI Materials 25/50 Index.

This means that the ETF's performance is directly tied to the performance of the underlying index. The MSCI USA IMI Materials 25/50 Index is designed to represent the performance of the materials sector in the US market.

The materials sector includes companies that produce goods such as chemicals, construction materials, and paper products. By investing in an ETF that tracks this index, you'll get exposure to a broad range of materials companies.

The Fidelity MSCI Materials Index ETF is a popular choice among investors, with a low expense ratio and a wide range of investment options.

Investing in ETFs can be a great way to diversify your portfolio and tap into the growing world of digital payments. One area to consider is the crypto and digital payments space.

The Fidelity Crypto Industry and Digital Payments ETF, also known as FDIG, focuses on companies that help power blockchain technology, cryptocurrency, and digital payments processing. This ETF is a great option for those interested in the digital payments sector.

Blockchain technology is at the heart of many digital payment systems, enabling secure and transparent transactions. This technology is used by companies like those invested in FDIG.

Digital Health investing offers a unique opportunity to tap into the rapidly growing demand for technology-enabled healthcare products and services. The Fidelity Digital Health ETF is a great example of this, investing in companies that provide innovative solutions like surgical robots.

Surgical robots are just one example of how technology is transforming the healthcare industry. These robots can assist surgeons during operations, improving outcomes and reducing recovery times.

Telemedicine is another area where digital health is making a significant impact. This allows patients to remotely consult with doctors and receive medical attention from the comfort of their own homes.

The Fidelity Digital Health ETF is a great way to gain exposure to this growing market, with a focus on companies that are pushing the boundaries of what is possible in healthcare technology.

Sustainable Core Plus investing offers a range of options, including the Fidelity Sustainable Core Plus Bond ETF (FSBD).

FSBD is a core fixed income ETF that provides exposure to debt securities of all types believed to have positive environmental, social, governance (ESG) benefits.

This ETF allows you to invest in debt securities that are not only financially sound but also contribute to a more sustainable future.

Fidelity's approach to evaluating ESG benefits involves assessing individual issuers' environmental, social, and governance profiles.

By doing so, FSBD aims to provide a more comprehensive and responsible investment solution.

Investing in FSBD can be a great way to align your investments with your values and contribute to a more sustainable world.

The Wise Bitcoin Fund is a great way to get exposure to the price of bitcoin without buying it directly. It's available in most brokerage, trust, and IRA accounts.

One of the funds is the FBTC, offered by Fidelity. It's a unique investment option that allows you to gain exposure to the price of bitcoin without actually owning the cryptocurrency.

The Wise Origin Bitcoin Fund is another option, but it's not specifically mentioned in the article section facts, so I'll stick with the FBTC example.

There are two main types of ETFs: index-based ETFs and actively managed ETFs. Index-based ETFs are passively managed investments that track an index, like the S&P 500, which includes the stocks of the 500 largest public companies in the US.

Most ETFs are passively managed, and you can expect lower fees with index-based ETFs. Actively managed ETFs, on the other hand, have a fund manager or team trying to outperform a benchmark index by trading assets a little differently.

Actively managed ETFs often have a benchmark index, like the S&P 500, but the fund manager might include only certain companies within the index or frequently buy and sell stocks to try to capture an edge. This comes with higher fees.

Stock ETFs are meant for long-term growth and offer built-in diversification, but they are riskier than bond ETFs. Bond ETFs hold several bonds with staggered maturity dates, providing a steadier stream of interest income.

Commodity ETFs bundle raw goods, like gold or orange juice, into a single investment. Understanding how a specific fund works is crucial, as it can have varying tax implications and risk levels.

Sector ETFs track companies within specific sectors, like technology or health care, and can be useful for aligning your investing strategy with business cycles. Sector ETFs often carry higher risk than broad-market ETFs.

Foreign Market ETFs hold foreign stocks and are an easy way to diversify your portfolio. Thematic ETFs track investing themes, like artificial intelligence or highest dividends, and may hold stocks from any asset class or part of the world.

Factor ETFs use valuation methods or technical analysis to choose stocks with certain fundamental characteristics, like growth stocks or value stocks.

ETFs provide several potential benefits, sometimes even above what individual stocks or mutual funds provide.

The exact benefits depend on which ETF you're considering and what the alternatives are.

Some of the top pros of ETFs include diversification, which can help reduce risk by spreading investments across various assets.

ETFs also offer flexibility, allowing you to invest in a wide range of asset classes, sectors, and geographic regions.

In general, ETFs can be more cost-effective than individual stocks or mutual funds, with lower fees and expenses.