Are ETFs safe for beginners?

ETFs are considered one of the safest ways to start investing because they’re diversified and often track the market. But like any investment, they can go up and down and there are some risks involved.

How do I buy an ETF in Belgium?

You can buy ETFs through an online broker or investment app . It's just like buying a stock. Make sure to compare platforms for fees and available ETFs.

"Tracker" is another name for an ETF that follows a market index. It’s a common nickname, especially in Belgium and the Netherlands.

What is an ETF? A simple guide for Belgian investors

Investing used to be complicated. You'd need a financial advisor, pay hefty fees, and still worry about whether you picked the right stocks.

ETFs changed all that. They're simple, cheap, and let you invest in entire markets with just one purchase. No stock picking required. If you're curious about what an ETF actually is and why Belgian investors love them, you're in the right place.

What is an ETF?

An ETF (Exchange-Traded Fund) is a type of investment fund that’s traded on the stock exchange, just like a stock. It holds a basket of different assets, such as stocks or bonds, so when you buy one ETF, you’re investing in all those assets at once.

In simple terms:

An ETF is a low-cost way to invest in many companies at the same time through a single investment.

For example, an ETF that tracks the S&P 500 index holds shares of 500 of the largest companies in the US. Buying that one ETF means you own a small piece of each of those companies.

How does an ETF work?

ETFs are designed to make investing easier and more accessible. Here’s how they work:

Traded on the stock market: you can buy or sell an ETF throughout the day, just like a regular stock.
Holds a mix of investments: most ETFs track an index. This means they own the same shares that are part of that index.
Instant diversification: instead of betting on one company, you spread your money across many. This reduces your risk.
Passive investing: most ETFs are passively managed, meaning they simply follow the market rather than trying to beat it.

Because of this simplicity, ETFs are popular for long-term investing. You don’t need to pick individual stocks. The ETF does the work for you.

Why do Belgian investors like ETFs?

ETFs are especially popular with Belgian investors looking to grow their money long-term.

Here’s why:

Diversification: spread your money across many companies with one investment.
Low fees: ETFs typically have much lower costs than traditional investment funds.
Flexible: buy and sell whenever markets are open.
Transparent: you always know what’s inside the ETF.

They’re ideal for anyone who wants to invest in the stock market without becoming a full-time expert.

And they work. Investing in ETFs compounds to substantial returns over time. For example, a globally diversified ETF like IWDA, which invests in more than 1,400 companies in the MSCI World index, has returned an average 10.2% since 1980:

Accumulating vs distributing ETFs

In Belgium, one of the most important ETF decisions you’ll make is whether to choose an accumulating or distributing ETF.

Here’s the difference:

Distributing ETFs pay out dividends. If companies in your ETF earn profits, you’ll receive part of those profits as cash in your account. But in Belgium, you’ll pay 30% tax on those dividends.
Accumulating ETFs automatically reinvest the dividends back into the fund. You don’t get cash payouts, but the value of your investment grows. The best part? You avoid the 30% dividend tax, making them more tax-efficient for Belgian investors.

Tip: If you're investing for the long term, accumulating ETFs are usually the smarter choice in Belgium due to their tax advantages.

We've put together an ETF checklist should you wish to learn more on selecting the right ETF.

How to start with ETFs

At Curvo, we think that ETFs are the best way for most people to grow their long-term wealth. To get started, start with our beginner's guide on index investing.

Conclusion: why ETFs are a smart first step

If you've been wondering how to start investing, ETFs are your answer. They remove the complexity of picking individual stocks whilst giving you broad market exposure at a low cost. For Belgian investors, choosing accumulating ETFs means you keep more of your returns thanks to better tax treatment.

Remember, successful investing isn't about timing the market perfectly or finding the next big winner. It's about starting early, staying consistent, and letting compound growth do the heavy lifting. ETFs make this strategy simple and accessible, even if you're completely new to investing.