facebookIs it advisable to buy into ETF versus Stocks? - Seedly

Anonymous

07 Feb 2020

Stocks

Is it advisable to buy into ETF versus Stocks?

Which would reap better rewards? how do i tread the line between risk and reward?

Discussion (8)

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Bjorn Ng

04 Dec 2019

Business Analyst at 10x Capital

Hey there, honestly it depends on your investment strategy. Do you have the time to pick and hunt for the good stocks? Or would you prefer a straight basket of diversified stocks (i.e ETF) at one go?

Of course the ETF seems like a straightforward decision, but 1 difference would be the growth of ETF vs. Stocks, where if you managed to find a great business, it can potential excel way even higher than a similar industry ETF you purchased.

Elijah Lee

04 Dec 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

No right or wrong here, but you will want to see if the ETF is in the market that you wish to invest in. ETFs/UTs can be an option to diversify if you do not have time to do research into a specific company.

However, if you have time to do research, then it is far more satisfying to buy stocks in my opinion, especially if you can get it right. Buying the bank shares over the past few years, for example, would have led to you beating the STI easily.

ETF is definitely the basic and most advisable option.

Stocks need to do a lot of research and even if you research, your investment decisions may have been faulty, this ends up in you picking the wrong stock.

It depends on how much interest you have in doing your own research on individual stocks, as well as...

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