Exchange-Traded Funds (ETFs) investment overview

Exchange-Traded Funds (ETFs) allow investors to trade units on stock exchanges that track various assets, such as indices, commodities, or specific sectors. To invest in ETFs, individuals typically require both a Demat account to hold units electronically and a trading account to place buy and sell orders on the exchange.

International ETFs provide exposure to markets and companies outside the United States, offering portfolio diversification across different economic cycles. These funds can target developed markets like Canada, Japan, Germany, and the United Kingdom, or emerging markets such as India, Brazil, and Mexico. While international ETFs offer broader reach, they introduce unique risks, including currency fluctuations, political developments, and varying market regulations. Investors should distinguish between international ETFs, which focus solely on non-U.S. securities, and global ETFs, which include both domestic and international assets.