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Exchange-traded funds (ETFs) have become one of the most popular investment vehicles for traders and investors alike. They’re flexible, easy to trade, and provide instant diversification in a single ticker. But with thousands of ETFs available, knowing where to start can feel overwhelming.
In this beginner’s guide, we’ll break down why ETFs matter, what types of ETFs you should know about, and how to use Barchart’s ETF tools to research, screen, and build your ETF strategy.
Why ETFs Are a Great Starting Point
- Diversification: Instead of betting on one stock, you get exposure to dozens — or even hundreds — of companies.
- Low Costs: ETFs typically have lower fees compared to mutual funds.
- Transparency: Holdings are updated as often as daily, so you know exactly what you’re buying.
- Flexibility: ETFs trade like stocks, meaning you can buy and sell them throughout the day.
For beginners, ETFs are often the easiest way to invest in entire markets, sectors, or themes.
Key Types of ETFs to Understand
- Broad Market ETFs: Track indexes like the S&P 500 (SPY) or Nasdaq-100 (QQQ).
- Sector ETFs: Target industries such as technology (XLK), healthcare (XLV), or energy (XLE).
- Thematic ETFs: Focus on trends like AI, renewable energy, or blockchain.
- Inverse & Leveraged ETFs: Provide amplified gains or losses. These are higher-risk tools used by advanced traders.
- Dividend ETFs: Designed to generate income through dividend-paying stocks.
How to Use Barchart’s ETF Tools
1. ETF Menu Overview
From the ETF menu on Barchart, you can quickly access the ETF Finder, Screener, Trading Signals, Top Rankings, and more.
2. New ETF Recommendations
Barchart’s recommendations provide buy and sell signals based on models like TrendSeeker®. You can filter by daily, weekly, or monthly signals to match your strategy.

3. ETF Screener
Easily filter ETFs by performance, yield, RSI, leverage, sector, and more. You can even apply multiple filters at once (e.g., high-yield ETFs in the tech sector with RSI under 40).
4. Screen by Your Watchlist
Already tracking stocks and ETFs? Use your watchlist directly in the ETF Screener to zero in on the opportunities you care about most.
5. ETF Finder
Looking for something specific? Search ETFs by asset class, sector, industry, or theme. Find funds tied to crypto, AI, emerging markets, and more.

6. Related ETFs Page
Like Apple (AAPL) or NVIDIA (NVDA)? Use the Related ETFs page to see which funds hold them. Perfect for thematic investing or indirect exposure.
7. ETF Holdings View
Click into any ETF to see its top holdings, weightings, and performance. This helps you understand exactly where your money is going — and you can even save these holdings as a custom watchlist.
Why This Matters for Beginners
Understanding ETFs isn’t just about finding one to buy; it’s about building a strategy that fits your goals. With Barchart, you can:
- Discover new opportunities with recommendations.
- Screen for ETFs that fit your criteria.
- Track your favorite funds with custom watchlists.
- See exactly what’s inside every ETF before you invest.
Whether you’re brand-new to investing or looking for smarter ways to manage your portfolio, Barchart’s tools give you everything you need to research, compare, and act with confidence.
Watch the full beginner’s guide and start exploring different funds with the ETF Finder now: