ETFs | Exchange Traded Funds | DNB Markets (2024)

DNB Logo

‌Search

ETFs are funds traded on the stock exchange. ETFs are funds that are traded on an exchange. They are affordable alternatives to regular mutual funds.

ETFs | Exchange Traded Funds | DNB Markets (1)ETFs | Exchange Traded Funds | DNB Markets (2)
  • An affordable alternative to mutual funds

  • Gives you the opportunity to invest in an index, sector or commodity

  • Easily traded through our online equity trading service

Exchange-traded funds can be bought via our equity trading service.

Why invest in an exchange-traded fund – an ETF?

Listed funds (ETFs) give you the best of two worlds: The flexibility of a share and the risk spread of a mutual fund In other words, an ETF is a fund listed on the stock exchange, just like shares. The fact that a fund has been traded on stock exchange means that the value of the fund will change in line with the index the fund reflects.

ETFs give you access to markets you could not otherwise invest in as a non-professional

By investing in ETFs, you can expose yourself to both Norwegian and international stock indices, or commodity indices, for different markets. In the ETF, as an investor, you get value development similar to the return on the index in question. If, for example, you invest in an index for US property shares, you get a return that reflects the US property market.

We offer ETFs in a range of asset classes, such as equities, real estate and commodities. You can see the full list in our equity trading service. You’ll get a complete overview in our equity trading service Read more about ETFs in the FAQs section further down the page.

Who are ETFs suitable for?

Exchange Traded Funds are suitable for anyone who:

  • wants to spread their risk, in a cost-effective way;
  • wants to invest in markets which are otherwise difficult to get access to;
  • wants to avoid the risk related to investing in individual companies.

Investing in an ETF is more affordable than investing in actively managed mutual funds. Investing in an ETF is also a good option if you want to invest in a certain commodity market, or in an international stock market.

ETFs | Exchange Traded Funds | DNB Markets (3)ETFs | Exchange Traded Funds | DNB Markets (4)

International ETFs make it simple and affordable to invest internationally.

International ETFs give you access to international markets

Exchange-traded funds are suitable for people who want to invest outside of Norway but who do not want to invest in individual shares.

To trade international ETFs, you must be a customer of our online equity trading service and be registered for trading on international stock exchanges. You do this inside our equity trading service after you are registered as a customer (on "My profile").

Click the button below to get an overview of which ETFs we offer in different markets.

‌Here you can search our ETFs

The difference between index funds and ETFs

An index fund offered by a management company and an ETF traded on an exchange have several similarities. Both types of funds consist of securities that follow the price movements of an underlying index. At the same time, there are two key differences between an index fund and an ETF:

  • How shares are priced
  • Automatic vs. a certain degree of management

An important difference between an ETF and a mutual fund (index fund) is in how the shares are priced. When you buy shares of an index fund, you buy them at an unknown price, because the manager buys their shares once a day after the market is closed. The ETF on the other hand is priced according to supply and demand in the market throughout the trading day. The buy price you enter is the price you pay.

Another difference is that in an index fund, there will be a certain level of exclusion of environmentally hostile and unethical companies (ESG adjustments). In an EFT, no companies are excluded – the ETF gives you a piece of every company that the index is made up of.

ETFs | Exchange Traded Funds | DNB Markets (5)ETFs | Exchange Traded Funds | DNB Markets (6)

Would you like to invest in the Oslo Stock Exchange benchmark index ? In that case, the DNB OBX ETF is a good option.

Buy DNB OBX – invest in the benchmark index on the Oslo Stock Exchange

Our own exchange traded fund DNB OBX is linked to the benchmark index on the Oslo Stock Exchange (OBX). DNB OBX is tied to the benchmark index on the Oslo Stock Exchange (OBX). The benchmark index, and the ETF, will always consist of the 25 most traded shares on the Oslo Stock Exchange over the previous six months.

‌Read more about DNB OBX

Questions and answers about ETFs

What is an exchange-traded fund, an ETF?

An Exchange Traded Fund (ETF) is a mutual fund that you can trade on the stock exchange. These mutual funds can consist of shares or other securities that follow the price of an underlying index.

By trading ETFs, you can get exposure to shares, indices, currencies and commodities just as easily as you trade a share.

Some of the products give you both short and long exposure to the underlying asset, as well as increased exposure through gearing.

What is the difference between and ETF and a mutual fund?

You can buy normal funds, or mutual funds, directly from your bank or from a mutual fund provider. Mutual funds are managed, either passively (index funds) or actively, by a portfolio manager.

Even index funds, passively managed funds, will often involve a small element of management. Unethical and environmentally hostile companies will for example be removed. An index fund is hence not exactly the same as the index it measures itself against, but slightly adapted. However, an ETF that invests in an index will contain all of the companies in the index – no companies are excluded.

Because an ETF is a completely passive reflection of a share index or price index, these funds are usually also cheaper than mutual funds.

Where can I find the ETFs that DNB offers?

You will find the selection of Norwegian and international ETFs in the online equity trading servicethe online equity trading service. When you log in, click on the summary page in the online equity trading service and then on ‘Markets and Prices’.

Several of the ETFs are registered on foreign stock exchanges. In order to trade on foreign stock exchanges, you must sign an agreement on foreign deposits.

This agreement can be signed by clicking on ‘My profile’ and selecting ‘Securities - Foreign’.

What does it cost to buy and sell ETFs?

To buy and sell ETFs, you pay brokerage fees in the same way as when buying shares. The brokerage fee is the same but varies for the different marketplaces.

Equity trading price list

Is there a minimum amount for buying ETFs?

The minimum amount for buying an ETF is the price of one share in the ETF in question. If, for example, the ETF is trading for NOK 67, the minimum amount will be the same.

What is a commodity ETF?

A commodity ETF has commodities as the underlying index, which could be, for example, oil, electricity or gold.

If you believe a rise or fall in commodity prices is coming, you can buy a commodity ETF that is invested in the commodity you want. The value of the ETF will vary with the price fluctuation in the commodity that the fund has invested in.

Which types of commodity ETFs can I buy through DNB?

You will find a summary by clicking through to the summary page in the online equity trading service and then choosing ‘Market and Prices’. Here you can use the search function to find the products in question.

How can I follow the changes in value?

Under the ‘Portfolio and Orders’ tab, you will be able to follow the price changes of the ETFs.

How can I buy and sell in purely practical terms?

ETFs are traded in the online equity trading service in your online bank, in exactly the same way as a share.

Here is an explanation of how to buy.

Can I buy and sell ETFs at any time of the day?

You can place your order 24 hours a day, but it will only be executed during the exchange’s opening hours, which are 09:00–16:25 Monday to Friday (applies to the Oslo Stock Exchange).

You will find the opening hours of the other stock exchanges we offer for trading under international shares.

How risky is an ETF?

The risk will vary from low to high. This is because the different ETFs are linked to different markets and underlying products. The risk of the underlying securities may also vary over time. We therefore recommend that you familiarise yourself with the features of the product before making a purchase. Read more about risk in financial instruments here.

Our prices and terms and conditions

Securities trading is subject to strict rules. We’ve gathered all our terms and conditions onto one page. Here you will find our obligations as an investment firm. In addition, you’ll find information on what you, as a customer, are obliged to familiarise yourself with, and what our services cost.

‌Prices, terms and conditions

Products and services you may be interested in

  • Online equity trading serviceBuy and sell shares and exchange-traded funds in our online equity trading platform
  • ETN – exchange-traded securitiesBuy or sell a position in a company or market, with or without gearing
  • Unlisted sharesWe offer unlisted shares registered on the NOTC list
  • International sharesBuy shares on 15 different stock exchanges in 13 different countries on our online equity trading platform
  • Securities financingWould you like to loan against your securities?
  • Research and share tipsOur reputable analysts can give you unique insights
  • Issues and IPOsWe can help with raising capital and offer investment opportunities.
  • Investment BankingWe provide assistance in mergers, sales and acquisitions as well as corporate financing.
  • Prices, agreements, terms and conditionsSee our business terms and conditions, price lists and trade agreements
  • Courses and eventsWe organise courses and events for anyone interested in learning more.

Footer navigation

Head office

Dronning Eufemias gate 30

0191 Oslo, Norway

Postal address

DNB

PO Box 1600 - Sentrum

0021 Oslo

Org. no.

DNB Bank ASA

984 851 006

DNB Websites

DNB Eiendom (DNB Real Estate)#girlsinvestDNB Tech Blog

International

DNB LuxembourgDNB SwedenDNB Denmark

Social media

Terms of useData protectionCookiesPrice listCompare our prices with other companies at Finansportalen.noWork for us

© DNB

DNB Logo

Norsk

ETFs | Exchange Traded Funds | DNB Markets (2024)

FAQs

How many ETFs is enough? ›

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What's the downside of ETFs? ›

ETFs are designed to track the market, not to beat it

But many ETFs track a benchmarking index, which means the fund often won't outperform the underlying assets in the index. Investors who are looking to beat the market (potentially a riskier approach) may choose to look at other products and services.

What is an ETF and how does it work? ›

ETFs or "exchange-traded funds" are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.

What are two facts about exchange-traded funds ETFs? ›

Like stocks, ETFs can be traded on exchanges and have unique ticker symbols that let you track their price activity. Unlike stocks, which represent just one company, ETFs represent a basket of stocks. Since ETFs include multiple assets, they may provide better diversification than a single stock.

How many ETFs is too many to invest in? ›

Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

How many S&P 500 ETFs should I own? ›

SPY, VOO and IVV are among the most popular S&P 500 ETFs. These three S&P 500 ETFs are quite similar, but may sometimes diverge in terms of costs or daily returns. Investors generally only need one S&P 500 ETF.

Why should I not invest in ETFs? ›

Market risk

The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.

Is it smart to just invest in ETFs? ›

If you're looking for an easy solution to investing, ETFs can be an excellent choice. ETFs typically offer a diversified allocation to whatever you're investing in (stocks, bonds or both). You want to beat most investors, even the pros, with little effort.

Has an ETF ever gone to zero? ›

Leveraged ETF prices tend to decay over time, and triple leverage will tend to decay at a faster rate than 2x leverage. As a result, they can tend toward zero.

How does my money grow in a ETF? ›

Though ETFs allow investors to gain as stock prices rise and fall, they also benefit from companies that pay dividends. Dividends are a portion of earnings allocated or paid by companies to investors for holding their stock.

How do you actually make money from ETFs? ›

How do ETFs make money for investors?
  1. Interest distributions if the ETF invests in bonds.
  2. Dividend. + read full definition distributions if the ETF invests in stocks that pay dividends.
  3. Capital gains distributions if the ETF sells an investment. + read full definition for more than it paid.
Sep 25, 2023

How do ETFs pay out? ›

ETF issuers collect any dividends paid by the companies whose stocks are held in the fund, and they then pay those dividends to their shareholders. They may pay the money directly to the shareholders, or reinvest it in the fund.

What is the main benefit of an ETF? ›

Positive aspects of ETFs

The 4 most prominent advantages are trading flexibility, portfolio diversification and risk management, lower costs versus like mutual funds, and potential tax benefits.

What is ETF advantages and disadvantages? ›

Advantages and disadvantages of ETFs

Investing in ETFs helps to mitigate unsystematic risks due to its passive investment strategy. It also lowers one's overall investment risk. It greatly helps with portfolio diversification. With the limited role of fund managers, ETF investments are comparatively cost-effective.

What is a fun fact about ETF? ›

$176.9 billion is traded in equity ETFs each day on average. Another $32 billion changes hands in fixed income ETFs. A grand total of $53.8 trillion in ETFs was bought and sold across 2022. The scale of that trading activity helps explain why the best ETFs are so liquid and why we pay so little in bid-offer spreads.

How much of your money should be in ETFs? ›

You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.

What is the 70 30 ETF strategy? ›

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What is a good ETF fund size? ›

Level of Assets: An ETF should have a minimum level of assets, with a common threshold being at least $10 million. An ETF with assets below this threshold is likely to have a limited degree of investor interest, which translates into poor liquidity and wide spreads.

What is the 3% limit on ETFs? ›

Under the Investment Company Act, private investment funds (e.g. hedge funds) are generally prohibited from acquiring more than 3% of an ETF's shares (the 3% Limit).

Top Articles
Latest Posts
Article information

Author: Aracelis Kilback

Last Updated:

Views: 5651

Rating: 4.3 / 5 (44 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Aracelis Kilback

Birthday: 1994-11-22

Address: Apt. 895 30151 Green Plain, Lake Mariela, RI 98141

Phone: +5992291857476

Job: Legal Officer

Hobby: LARPing, role-playing games, Slacklining, Reading, Inline skating, Brazilian jiu-jitsu, Dance

Introduction: My name is Aracelis Kilback, I am a nice, gentle, agreeable, joyous, attractive, combative, gifted person who loves writing and wants to share my knowledge and understanding with you.