EXCHANGE
TRADED FUNDS
Basic information
What is an ETF?
ETFs are often referred to as the investment vehicle for the 21st century. It is a modern form of mutual funds - a portfolio of securities that is traded on the stock exchange, just like stocks. Allows for wide diversification and, thanks to liquidity, manage risk effectively. Its low cost makes sense for almost any investor.
Who are they for?
The investor gets a high flexibility and diversification from ETFs, thanks to which they can be traded by absolutely everyone - from a successful and experienced investor to a beginner investor with less capital and basic knowledge.
What is the difference between ETFs and mutual funds?
Comparative studies clearly demonstrate that most mutual funds lag behind the appreciation of their benchmark index over a longer time horizon .
In comparing their success , the funds do not play a fair game with their investors. The stock index only reflects the growth in the value of the stocks included in the given index, not dividends that flow to stockholders. ETFs, on the other hand, regularly redistribute dividends from the stocks in the index to their investors (after a small deduction for expenses and for their activities).
LIQUIDITY
Access and liquidity. Since ETFs are traded on exchanges, they can be easily bought or sold.
DIVERSIFICATION
ETFs provide access to a wide range of investment options that span a wide range of asset classes, sectors and geographies. They also facilitate the selection of specific themes or investment styles.
TRADING
Investors buy and sell mutual funds directly from the mutual fund company at the current day's closing price, also known as NAV. In contrast, ETFs
are traded throughout the day at the current market price like stocks and may cost slightly more or less than NAV.
Calculation of main differences
Při investici 10 milionů
The cumulative difference in your assets
Cumulative difference in fees paid
If the ETF and PF were to achieve the same gross return, this will be the resulting difference in total asset value.
1,780,354 CZK
5 years
CZK 1,004,070
5,224,764 CZK
10 years
2,149,081 CZK
10,629,185 CZK
15 years
CZK 3,441,418
CZK 18,916,218
20 years
CZK 4,880,196
CZK 50,041,170
50 years
CZK 8,125,044
That's how much you can save on annual fees when you buy an ETF.
Don't underestimate compound interest. Even the saved 2% pa play a big role.
Over 30 years of investing, you will have CZK 50 million less in a mutual fund with a higher fee, and you will pay CZK 8 million more in fees.
The composition of mutual funds and ETFs with the same focus is practically identical.
Property
The difference in assets between ETFs and mutual funds after 10 and 30 years is over
10 years
5 million crowns.
30 years
50 million crowns.
Charge
The difference in fees between ETFs and mutual funds after 10 and 30 years is over
10 years
2 million crowns.
30 years
8 million crowns.
Overview of ETFs
Fund name
Focus of the fund
Investment horizon
Risk tolerance
Base currency of the fund
Stocks
<5 years
7/7
USD
Stocks
6/7
EUR
<5 years
Stocks
6/7
EUR
<5 years
<5 let
USD
6/7
Akcie
FAQs
Why buy an ETF at Imperium Finance?
We analyze many trends in the economy. In this way, we manage to find investments that will ultimately deliver high appreciation. For example. cashless transactions, microchips, lithium miners, eSports, clean energy and more.
Are ETFs at greater risk than mutual funds?
Likewise, a focused mutual fund is just as risky as a focused ETF.
How fast will I get my money?
Your money will be in motion and in your account within three days from the telephone entry.
Can my investment go down in price?
Yes. The price is a short-term indicator of sentiment, but a long-term indicator of the value of the given companies. Price is what you pay, value is what you buy.
Will someone inform me about my investment and market news?
Yes. Communication will be set as necessary and will suit you.