How to Buy ETFs From iShares
The finance world has been revolutionized by the up-to-date information that the Internet provides. Stocks, bonds and exchange-traded funds (ETFs) can now be tracked by the second from home computers. There are many different websites and services for people who want to buy into the stock market. If you're interested in ETFs, you should know how to buy them from iShares.
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Instructions
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Set up an account with a stockbroker. If you already have other investments, then your broker will be able to help you buy iShares. You will need to know the symbol of the ETF you want to buy and the number of shares you want before your broker can purchase them.
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Look up the ETFs that you want to buy on the iShares website (see Resources below). The shares are traded directly on the open market and must be bought through a broker and not through the actual iShares website. IShares stocks are ETF funds that are part of various portfolios set up by Barclays Global Investors.
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Use the iShares Quick Finder on the left side of iShares website to get detailed information about each ETF. Each page will give you a breakdown of the companies that are included in the ETF. Notice how the price of share is different from its net asset value, because an ETF's price is determined by the market's demand.
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Click on the NAV/Index History link on each ETF page to get a comprehensive history of the security. The daily listing of the ETF's price covers its entire history and can help you make an informed investment decision. You may want to bring a copy of the history with you when you meet with your investment adviser.
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Register with iShares to receive more information about the ETFs. Registration doesn't cost anything, although you do need to give iShares your address and a general profile of your investment habits. You may find it useful to get the iShares newsletter since new ETFs are added frequently.
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Tips & Warnings
The NAV/Index History gives you the ETF value without any context. Remember that values, particularly those of foreign ETFs, can be influenced by a variety of market and political factors. The index's history may not give you enough context to accurately predict its future value.
To reduce risk, don't put more than 10 percent of your investment funds in one single ETF.
Try to limit your ETF transactions to reduce your broker costs. Each transaction has a set broker fee that is independent of the size of the buy or sell order.
