What is an "All-in-One" ETF and how does it work?

An "All-in-One" ETF (Exchange-Traded Fund) is an investment that holds thousands of stocks from around the world in a single package. When you buy one share, you instantly own tiny pieces of companies across different countries, industries, and sizes. It's like buying a pre-made, globally diversified portfolio with one simple transaction, making it perfect for beginners who want broad market exposure without having to research and buy individual stocks.

What makes a stock "blue-chip" and why are they in this portfolio?

Blue-chip stocks are shares of large, well-established, financially sound companies with excellent reputations. These are industry leaders like Apple, Microsoft, or Johnson & Johnson that have proven their stability through various economic conditions. They're included in this starter portfolio because they typically offer more reliability, often pay dividends (regular cash payments to shareholders), and provide exposure to specific important sectors, complementing the broad market coverage of the global ETF.

What does "economic moat" mean when describing these companies?

An "economic moat" refers to a company's ability to maintain competitive advantages that protect its market position and profitability from competitors – like a moat protected medieval castles. Companies in this portfolio with strong moats (like Visa or Coca-Cola) have advantages such as powerful brand recognition, proprietary technology, scale economies, or network effects that make it difficult for competitors to take their market share, potentially leading to more stable, long-term investment returns.

What is a dividend and why are dividend-paying stocks included?

A dividend is a portion of a company's earnings that is paid out to shareholders, usually quarterly. For example, if you own shares of Coca-Cola, they might pay you a few cents per share every three months. Dividend-paying stocks are included in this starter portfolio because they provide regular income in addition to potential stock price growth. This income can be especially valuable for beginners as it provides returns even when markets aren't growing, and demonstrates the company's financial strength and commitment to shareholder value.

How does instant diversification benefit new investors?

Instant diversification means spreading your investment across many different assets at once, which is exactly what this portfolio offers. For new investors, this brings three key benefits: 1) Reduced risk, as poor performance from some investments can be offset by better performance from others; 2) Exposure to multiple growth opportunities across different sectors and regions; and 3) Less pressure to "pick winners," which can be challenging even for professionals. This approach provides a solid foundation while you learn more about investing.

16 handpicked stocks

Easy Starter Portfolio

Begin your investment journey confidently with this smartly designed collection of stocks. Our professional analysts have carefully selected these assets to give you instant global diversification paired with world-leading companies, creating the perfect foundation for long-term growth.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 18