ETFs CFDs Trading

ETF CFDs offer several advantages that have increased their popularity among day traders:

• Spread out your potential risks or rewards – you can trade an entire market as though it were a single stock or commodity.
• Find additional trading opportunities – ETFs are designed to give you exposure to diverse markets/sectors within capital markets. This means you can diversify your portfolio without the need for a large amount of capital.
• Enjoy tight spreads with zero commissions for making a deposit and opening/closing a trade. In addition, gain unlimited access to real-time ETF quotes charts and quotes with the Plus500 platform.

An exchange-traded fund (ETF) is a financial instrument that tracks (and sometimes amplifies) the market price of the top companies within a specific financial sector, such as aerospace, banking, energy, technology, or commodity, such as oil, natural gas, gold or lithium.

Trading ETFs with leverage allows you to multiply the size of a trade through the use of borrowed capital. As such, you can increase the potential profit or loss to be realised from the trade. Plus500’s available leverage for ETFs CFDs is 1:5.

To see a full list of ETFs CFDs offered on the trading platform, click here.

The SPDR S&P 500 Trust, commonly referred to as SPY (or S&P 500-tracking ETF), is a popular ETF which follows the daily price movement of the S&P 500 - the main gauge of large-cap US-listed companies, and an important indicator of the US economy.

Gold can be traded through a range of ETFs. Here are some of the most popular ones:

• GLD GOLD, SPDR Gold Shares ETF; tracks the daily price movement of gold, one of the world's most precious metals.
• ETFS Gold, ETFS Physical Gold; follows the spot price of physically-held gold bullions and coins in vaults.
• GDX, VanEck Vectors Gold Miners ETF; offers exposure to gold mining companies, and tracks the daily price movement of their shares.
• GDXJ, VanEck Vectors Junior Gold Miners ETF; monitors gold mining companies with smaller market capitalisations than those in the GDX.