ETF stands for "Exchange-Traded Fund." Simply put, it's like bundling a group of stocks into a package and trading that package on the stock market. For example, if you want to invest in tech stocks but don't know which ones to pick, buying a tech ETF is like owning shares of multiple tech companies such as Apple, Microsoft, and others all at once.
ETF CFDs allow you to trade ETF price movements without owning the actual fund. No securities account is required, and there is no delivery of physical assets. ETF CFDs are more suitable for short-term, leveraged, and bi-directional trading strategies.
No. With EBC’s ETF CFD products, you can trade the price fluctuations of ETFs directly on the platform without owning any ETF shares.
The main trading costs of ETF CFDs include spreads and overnight financing fees. the overall holding cost is lower than the traditional ETF fee structure of management fees plus trading commissions. Specific costs may vary depending on the product, position direction, and market conditions. The final details are subject to the information displayed on the trading platform.
Yes. Unlike traditional ETFs that only allow long positions, ETF CFDs support short-selling. This provides strategic flexibility in both volatile and declining markets.
ETF CFDs are leveraged products and are better suited for users with some trading experience and risk awareness. We recommend that beginners practise using a demo account to become familiar with the product before trading live.
β measures an ETF’s historical volatility sensitivity relative to a market benchmark. In simple terms, it shows how closely an ETF has tended to move when the overall market fluctuates.
If β = 1, the ETF generally moves in line with the market and can be used to track overall market trends, such as broad-based ETFs like SPY and VOO.
If β > 1, the ETF is more volatile than the broader market. In a rising market, it may amplify returns and is often considered a more aggressive asset, such as SMH and QQQ. These ETFs are usually linked to stronger growth themes or popular sectors. However, a high β value is a double-edged sword. When the broader market falls, high-β assets often underperform the market, so investors need to balance potential returns with risk.
If 0 < β < 1, the ETF is less volatile than the broader market and is generally considered defensive, such as XLU and XLV. While it may be harder to outperform the market during rallies, drawdowns are usually smaller during market declines, and an appropriate allocation may help improve a portfolio’s resilience.
If β < 0, it usually refers to inverse or special-purpose assets that tend to move in the opposite direction of the market, such as TLT and certain inverse ETFs.
β is calculated based on historical data and is only intended to help understand volatility style. It does not represent future performance.
Can't find the ETF you want to trade?
Enter the ETF name or ticker you are interested in. We will evaluate it based on product coverage and market demand.
Can't find the ETF you want to trade?
Enter the ETF name or ticker you are interested in. We will evaluate it based on product coverage and market demand.
