ETFs

ETFs

What is an ETF

An ETF (Exchange Traded Fund) is a fund that trades on an exchange like a regular stock. In simple terms, an ETF is a basket of assets (stocks or bonds) combined into one instrument. When you buy an ETF, you are not investing in just one company, but in a broad set of assets at once. This helps reduce risk and makes investing more accessible.

ETFs are used as a core tool for building a diversified portfolio. They make it possible to invest in the broader market without the need to select individual companies and help simplify the process of long-term capital accumulation. By combining multiple assets into a single instrument, ETFs provide a structured and transparent approach to investing that is easier to manage and maintain consistently over time.
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Which ETFs we use

Our strategy uses diversified ETFs that reflect global markets and different asset classes.
Examples of ETF categories:
  • S&P 500 ETFs — the largest companies in the United States
  • MSCI World ETFs — developed markets around the world
  • Bond ETFs — government and corporate bonds
We use ETFs as an allocation tool rather than for selecting individual companies. This helps preserve simplicity and transparency within the strategy.

Why ETFs work well for long-term savings

ETFs are one of the most effective tools for long-term investing.
Main reasons:
  • Diversification — investments are spread across many companies and countries
  • Low fees — generally lower than actively managed funds
  • Simplicity — no need to analyze individual stocks on your own
  • Transparency — fund holdings are open and easy to understand
This structure is well suited to regular investing over many years.

ETF risks

Despite diversification, ETFs are still exposed to market risks.
Main risks:
  • Market risk — the value of an ETF can decline along with the market
  • Volatility — short-term price fluctuations are possible
  • Currency risk — when investing in foreign markets
ETFs do not protect against market declines, but they can reduce the impact of individual companies or sectors.
ETFs

How ETFs fit into our strategy

In our model, ETFs are used as a tool for the part of the portfolio related to stocks, and in some cases for the bond portion through bond ETFs.
ETFs help us apply the principle of diversification without making the strategy more complicated.
01

Conservative Profile

a smaller share of ETFs, with a focus on stability and lower risk.
02

Balanced Profile

a moderate share of ETFs, combining growth potential with stability.
03

Growth Profile

a larger share of ETFs, focused on long-term capital growth.
In this way, ETFs serve as a convenient and transparent tool for long-term capital growth within the overall strategy, where secure assets and a small allocation to bitcoin (typically not exceeding 5–10%) are also used.

Frequently Asked Questions

  • 1. What is an ETF in simple terms?
    An ETF is a fund that combines many assets such as stocks or bonds and trades on an exchange like a regular stock.
  • 2. How is an ETF different from buying individual stocks?
    When you buy an ETF, you invest in dozens or even hundreds of companies at once, rather than in just one. This reduces risk and makes investing more stable.
  • 3. Can you lose money in ETFs?
    Yes, the value of an ETF can decline together with the market. However, diversification helps reduce the impact of individual companies or sectors.
  • 4. Are ETFs suitable for long-term investing?
    ETFs are often used for long-term savings because of their low fees, transparency, and broad diversification.
  • 5. Do I need to understand the market deeply to invest in ETFs?
    Deep market knowledge is not required, because ETFs already include a broad range of assets and simplify the investment process.

Start building a diversified portfolio

We help you define a clear portfolio structure and select instruments aligned with your goals and time horizon.
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