ETF education
How to buy ETFs online: Quick guide for investors
You don’t need advanced knowledge or a huge sum of money to buy an ETF. Just a brokerage account, a small starting balance, and the right ETF for your goals. Then it’s as simple as hitting “buy.”
TL;DR: How to buy an ETF in four steps
Open a brokerage account: Think of this as your investing “home base.” It’s quick, online, and pretty much works like a bank account.
Choose your ETF(s). There are plenty of options, just make sure your ETF matches your goals, risk tolerance, and timeline.
Place your order. Fund your account, then use a market or limit order to buy shares of your ETF.
Check in regularly. Track your investment over time (at least once a quarter).
How to buy
If you’ve ever ordered takeout online, you already know the basics: choose what you want, pay for it, and wait for confirmation. The difference here is that instead of lo mein or pizza, you’re buying a basket of investments that could help grow your money over time.
Investing in an ETF is simply buying shares of a fund that holds a basket of securities—like stocks, bonds, or other assets. Each share gives you exposure to everything inside the basket, so you don’t have to buy (and track) dozens of individual investments.
The process looks a lot like buying a stock. You open a brokerage account, search for the ETF by its ticker symbol, decide how many shares you want, and place your order.
If you’re interested in State Street SPDR ETFs, the steps are the same. You can’t buy them directly from our website, but you can find them on most major brokerage platforms. Just enter the ticker symbol of the ETF you want (for example, “SPYM” for the State Street® SPDR® Portfolio S&P 500® ETF), and you’re ready to buy.
1. Open a brokerage account
Before you can buy an ETF, you’ll need a brokerage account. Setting one up is quick and usually takes about 10–15 minutes online—not much different from opening a checking account (or ordering takeout).
You’ll provide some basic personal details, link a bank account, and add funds. From there, you’re ready to start trading.
2. Choose ETFs to invest in
When picking an ETF, consider:
- Your goals: Are you investing for long-term growth, retirement, or something shorter term?
- Your risk tolerance: Broad-market ETFs tend to be steadier, while niche or thematic funds have the potential for higher returns—and more volatility.
- Your time horizon: The longer you hold your investments, the more time you give investments to grow and compound.
- Fund costs: Check the expense ratio—lower is typically better.
3. Buy your first ETF
Once you’ve picked an ETF, it’s time to place your order. You’ll need to fund your brokerage account (usually via bank transfer), then search for the ETF by its ticker symbol.
When placing your order, you’ll choose between:
- Market order: Buys at the current market price, executed right away.
- Limit order: Lets you set the maximum price you’re willing to pay per share.
For most beginners, market orders are the simplest way to start. Once your order is placed, the ETF shares will appear in your account.
4. Regularly monitor your investment
Buying your first ETF calls for celebration (maybe some lo mein or pizza!). But it’s just the beginning.
Going forward, you should regularly monitor your investments to make sure they stay on track with your goals.
Think of it like checking the dashboard on your car: you don’t need to stare at it constantly (and you shouldn’t, for obvious safety reasons). But every so often, it’s important to take a glance and check your fuel gauge, speed, and any warning lights.
getting there starts here
We can’t predict your future. But we can help you create it.
Common missteps to avoid when buying ETFs
ETFs are designed to make investing simple. But it’s still possible to trip up on a few things.
Chasing hot trends
It’s tempting to buy the ETF that’s all over social media or the news. But like fashion fads, what’s hot today could disappear tomorrow (remember, shoulder pads used to be a thing). Instead, consider starting with low-cost, broad-market funds that can help you reach your long-term goals.
Ignoring costs
Even small fees can eat into returns, especially if you’re investing modest amounts. Compare expense ratios, consider the total cost of ownership (TCO), and aim for lower-cost options when possible.
Overtrading
ETFs trade like stocks, but that doesn’t make you a day trader. Constant buying and selling can rack up fees and tax consequences.
Overlooking liquidity
Some ETFs trade actively every day, while others don’t. Thinly traded funds can be harder (and more expensive) to buy or sell. Look for liquid ETFs, or those with higher trading volume if you want smoother execution.
Forgetting your goals
It’s easy to get distracted by market swings, but your strategy should always tie back to your financial goals and time horizon.
Next steps
Buying an ETF is easy. Once your brokerage account is set up, the process is as simple as searching the ticker symbol, deciding how much to invest, and clicking “buy.” From there, it’s about staying consistent and keeping your goals front and center.
At State Street Investment Management, we’ve been helping investors access the market through ETFs since launching the original ETF innovation in 1993. Today, our State Street SPDR ETFs give you a wide range of investment variety, from broad-market building blocks to more targeted strategies.
Wherever you are in your investing journey, the most important step is the next step forward. Open your account, make your first trade, optimize your portfolio, or start building toward your goals—one ETF at a time.
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