If you’re just starting your investment journey, you may have heard about ETFs (Exchange-Traded Funds) but aren’t entirely sure what they are or how they fit into your financial goals. ETFs have become one of the most popular investment options thanks to their simplicity, affordability, and diversification benefits, making them an excellent choice for both new and seasoned investors.

In this guide, we’ll cover everything you need to know about ETFs, including how they work, their benefits, and why Reitway Global is a strong choice for investors seeking exposure to the global real estate market through REIT ETFs.

What is an ETF? 

An ETF is an investment fund that pools money from multiple investors to buy a collection of assets such as stocks, bonds, commodities, or real estate. Unlike traditional unit trusts, ETFs trade on stock exchanges like individual stocks, meaning you can buy and sell them at any time during market hours.

Think of it like this: Instead of purchasing individual company stocks, an ETF allows you to buy a basket of investments in one transaction. For example, instead of buying shares in multiple technology companies like Apple, Microsoft, and Google, you could invest in a Technology ETF that holds all these stocks. This gives you instant diversification without having to pick individual winners and losers.

While both passive and active ETFs exist, this article focuses specifically on passive ETFs.

How Do ETFs Work?

ETFs operate like a basket of investments that track a specific index, sector, or theme. Here’s how they work:

• The ETF provider creates the fund - Companies like Vanguard, BlackRock, or Reitway Global design ETFs that track a specific market index, sector, or investment strategy. In some cases, these firms create custom indexes tailored to their approach, which the ETF then follows. Reitway Global specializes in developing custom indexes for its ETFs, offering a unique investment perspective.
• The ETF buys a collection of assets - If it’s an S&P 500 ETF, it holds shares in the 500 companies that make up the S&P 500 index. If it’s a Reitway REIT ETF, it holds a mix of real estate investment trusts (REITs), giving investors access to the property market.
• Investors buy shares of the ETF - When you invest in an ETF, you’re not buying individual stocks but rather a share of the fund, which represents a portion of all the assets inside it.
• The ETF trades like a stock - Unlike unit trusts, which are only priced once a day, ETFs trade throughout the day, meaning prices fluctuate based on supply and demand.

How ETFs Differ from Unit Trusts

Many new investors wonder how ETFs compare to unit trusts (mutual funds). Here are the key differences:

• Trading - ETFs trade like a stock throughout the day, whereas unit trusts are priced once per day after the market closes.
• Management Style - ETFs are mostly passively managed (they track an index), whereas unit trusts are often actively managed (fund managers pick stocks). Actively managed ETFs are becoming more available, where the ETFs tracks an actively managed (unit trust) fund. 
• Costs & Fees - ETFs have lower fees (no active management costs), while unit trusts generally have higher fees due to active fund management.
• Liquidity - ETFs can be bought and sold instantly like stocks, while unit trusts require waiting for end-of-day pricing.

ETFs provide more flexibility and lower costs, making them an ideal choice for beginners looking for an easy way to invest.

Why Are ETF Investments So Popular?

ETFs have grown incredibly popular over the last decade because they offer:

• Diversification without complexity - Buying one ETF can give you exposure to dozens or even hundreds of stocks, reducing your risk compared to investing in individual companies.
• Lower costs - Most ETFs have lower fees compared to unit trusts because they are passively managed—they simply track an index rather than paying fund managers to pick stocks.
• Flexibility & liquidity - Since ETFs trade like stocks, you can buy and sell them anytime the market is open—unlike unit trusts, which only allow transactions once per day.
• Transparency – Passive ETFs disclose their holdings daily, so you always know what’s inside your investment.

What Makes Reitway’s REIT ETFs Different?

• Custom Index Creation

Unlike ETFs that simply track generic indexes, Reitway creates its own custom indexes based on deep industry expertise. These tailored indexes allow for smarter, more forward-thinking investment strategies.

• Active & Passive Fund Options

Reitway offers both active and passive REIT investment strategies, ensuring that investors of all sizes can participate in the real estate sector through the most suitable vehicles.

• Assistance with Brokerage Accounts

Want to start investing in REIT ETFs but don’t have a brokerage account? Reitway can assist you in setting up the right platform to start trading effortlessly.

Why Open an Account Through Reitway Global?

• Expert guidance - Our team helps you choose the right brokerage account that aligns with your investment goals.
• Hassle-free setup - We assist with account registration and ensure you have the tools needed to start investing.
• Ongoing support - Benefit from ongoing investment insights and strategic portfolio recommendations.

How to Get Started with Reitway Global

1. Sign up – Follow our easy to use Sign Up process to begin your investment journey.
2. Select your REIT ETF – Choose the ETFs that aligns with your financial goals.
3. Start investing - Once your account is set up, begin growing your wealth through professionally managed global property investments.

Skip the confusion of choosing a brokerage—let Reitway Global help you invest in REIT ETFs with ease. 

Ready to start investing? Sign up here and we will contact you to talk you through the process. Don’t worry, you’ll have lots of opportunity to ask any questions you might have.