Things You'll Need:
- Stockbroker
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Step 1
Research the name of the ETF for the index you'd like to buy. The ETFs have different names and nicknames from their index counterparts. For example, the Dow Jones Industrial average ETF index is traded under the symbol DIA and commonly referred to as Diamond.
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Step 2
Contact your stockbroker with the number of ETF index shares you'd like to buy. ETFs are traded on the open stock exchange and can only be bought during normal trading hours. You'll have to pay a broker's commission fee for your purchase regardless of whether or not you use a real broker or an electronic one.
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Step 3
Diversify your ETF index portfolio. Since these securities can be bought in small amounts, you can have a diverse portfolio with minimal startup capital. It's recommended that you keep no more than 10 percent of your investments in one index to help prevent total losses.
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Step 4
Remember to set orders on the securities when you buy index ETFs. Just like with stocks, you can tell your broker to sell your holdings if their value drops below a certain limit. You can also set buy orders if you want to purchase more shares once the ETF reaches a certain value.
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Step 5
Check out foreign index ETFs for more investment opportunities. It's recommended that you buy general foreign index ETFs rather than those from certain industries. For example, you can purchase the EWJ Japan index ETF fund that covers hundreds of Japanese companies and will often be more stable than an industry-specific Japanese index ETF.
