Not long ago, working hard and saving could get you a house and equity. These days people hoping to grow wealth need to think outside the square, and Exchange-Traded Funds are one of the most effective tools for doing so.

Over the past two decades or more, Exchange-Traded Funds (ETFs) have gained traction as a highly efficient way to diversify and grow your wealth, according to Webull Australia’s CEO Rob Talevski. “There’s over $100 billion under management in ETFs in Australia at the moment,” Talevski says. “We’re seeing financial planners, professionals, and advisors use ETFs as well. It’s a great investment vehicle.”

For the uninitiated, ETFs are a basket of securities that can be traded on an exchange the same as a single stock. “ETFs allow investors ease of entry and exit to the market and provide broader market exposure,” Talevski says.

Why ETFs work for all investors

For new investors, ETFs offer access to a wide range of assets with a small initial investment. For example, buying an ETF that tracks the ASX 200 gives investors exposure to Australia’s top 200 companies, reducing the complexity and costs associated with buying multiple individual stocks.

ETFs are also attractive to experienced investors as they can diversify their portfolios without solely relying on individual stock picks. “Whether you are a new or seasoned investor, it’s the old adage – don’t put all your eggs in one basket,” Talevski says. “ETFs provide easy access to the market, cost-efficiency, and diversification.”

Why the US should be part of your strategy

While ETFs offer a simple access to a wider spectrum of the market, Talevski says exploring global opportunities can boost your wealth development potential. “If you concentrate all your investing domestically, you’re only tapping into a fraction of your investment potential,” he says.

“Australia has a relatively small capital market by global standards, and while investing locally gives you exposure to a quality market, the ability to invest in US ETFs is important because it’s the biggest capital market in the world.” Platforms like Webull Australia make it easier for the everyday investor to trade on global markets.

“We make it simple for clients by offering everything they need at their fingertips,” Talevski says. “Through our app, you’re able to access not only local Australian securities, but also securities on US, Hong Kong, and Chinese exchanges – some of the fastest growing markets in the world – all under the one account.”

The Webull app’s ETF Corner feature enables users to select the markets they want to explore, as well as filter the types of stocks they’re interested in and evaluate factors such as the returns and associated costs of each fund.

“The Webull app is an all-in-one solution,” Talevski says. “It allows you to navigate these global markets that you may not be familiar with, whilst still making decisions like you would domestically. “We offer research and analyst ratings of all these offshore companies, so our clients can build an investment profile that’s best suited to their investment needs.”

This article was developed in collaboration with Webull, an advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.