ETF investing and ETFs
Cost-effective way of investing
Exchange-traded funds (ETFs) are an easy, inexpensive and efficient choice for an investor's portfolio. They are a good choice for investors who tolerate risk, seek high returns and appreciate cost-effectiveness.
Real-time trading on stock exchanges
ETFs are traded on stock exchanges in the same manner as shares. You can buy and sell ETFs during the opening hours of stock exchanges.
Through ETFs, you can invest in almost anything due to the huge number of ETFs available on the market. You can choose to invest in a certain geographical area or in various sectors, commodities, currencies or fixed-income securities.
ETFs (exchange traded funds) are investment products that invest their assets automatically in various shares in accordance with the index they track. ETFs are mainly passive funds that don’t have active portfolio managers. For this reason, ETF investing is very cost effective. ETFs are traded on stock exchanges in the same manner as shares.
At present, ETF trading is possible at op.fi in the Finnish, Swedish and German markets in over 700 different ETFs. On our ETF pages, you can find lists which sort ETFs by the geographical market or a certain theme, such as megatrends or responsibility. Have a look at the ETF search engine, which allows you to search for ETFs with diverse criteria.
We only broker ETFs that have a marketing licence, i.e. they are registered in Finland.
ETFs (exchange traded funds)
Although most ETFs are passive index funds, you can find diverse ETFs in the markets. For example, an inverse ETF allows you to make an inverse investment relative to the benchmark index performance, which means that the ETF’s value increases when the equity market declines. A leveraged ETF seeks, say, a double or triple return relative to the benchmark index.
Most ETFs pay a dividend on their units based on the dividends paid on the fund's holdings. The dividend payment dates vary by ETF. As a rule, dividends are paid out monthly, quarterly, semi-annually or annually. Some ETFs do not pay out dividends but reinvest them within the ETF, which increases the value of the ETF unit.
Any capital gains and dividends from ETFs are subject to tax in accordance with the capital income tax rate. More information on taxation is available on the website of the Finnish Tax Administration.
How to start investing in ETFs
To start investing in ETFs, you need to open an equity investor’s service package.
Have a look at our extensive range of ETFs by using our ETF search engine. After finding an ETF that meets your needs, read the fund’s Key Investor Information Document and Fund Prospectus. They explain what kind of investment product the ETF is and how the index it tracks is constituted.
You can trade in ETFs via op.fi in the same manner as in shares. Before confirming an order, you always need to acknowledge that you have read the ETFs Key Investor Information Document. The trading fee is the same as in share trading and depends on the market place. See the list of service charges and fees here.
In 2020, OP's owner-customers can trade with ETFs free of charge. If you want to start investing in ETF funds but you are not yet an owner-customer, you can become the one here.