The distinctions between ETFs and stocks in Singapore

Investing in Singapore is a great way to diversify your portfolio and take advantage of valuable investment opportunities. ETFs and stocks are two popular asset classes that investors have access to in Singapore, but they have several essential distinctions which may affect how you choose to invest. This article will discuss the differences between ETFs and stocks in Singapore so that investors can make an informed decision about their investments.

Price

The price of stocks and ETFs can vary drastically. When you buy stocks, the market sets the price, which depends on factors like company performance, supply, demand, and investor sentiment. ETFs usually have a fixed price that reflects the underlying value of their assets. It makes them more affordable than individual stocks since you don’t need to buy multiple shares to get exposure to your desired asset class.

Diversification

Stocks are investments in one specific company or sector, …