Investing Made Simple: ETFs or Shares on EasyEquities?
ETFs vs Individual Shares on EasyEquities: What’s Best for You?
If you’ve started exploring investing through EasyEquities, you’ve probably noticed two main options on the platform: ETFs (Exchange-Traded Funds) and individual shares. Both can grow your wealth, but they work very differently — and knowing which suits you best can make all the difference in your investing journey.
Let’s break it down in simple, practical terms.
🧩 What Are ETFs?
An ETF is basically a basket of shares grouped together. When you buy one ETF, you’re investing in dozens (sometimes hundreds) of companies at once.
For example, the Satrix 40 ETF includes shares of the 40 biggest companies on the JSE — like Naspers, Shoprite, and MTN — all in one investment.
Think of it as buying a whole fruit basket instead of a single apple.
Benefits of ETFs:
- Diversification: Your risk is spread across many companies, so one bad performer won’t ruin your investment.
- Low effort: You don’t need to pick and monitor individual shares.
- Cost-effective: Most ETFs have low fees compared to managed funds.
- Great for beginners: If you’re new to investing, ETFs are a simple, low-stress entry point.
💼 What About Individual Shares?
Individual shares mean you’re buying a piece of one specific company — like Capitec, Woolworths, or Sasol.
Think of it as betting on one horse instead of the whole race.
Benefits of Individual Shares:
- Potential for higher returns: If you pick a strong company, your growth could outperform the market.
- More control: You choose exactly which companies you want to support or believe in.
- Dividends: Some companies pay regular dividends, which can become a steady income stream.
But here’s the catch: individual shares also carry more risk. If your chosen company performs poorly, your investment can drop sharply.
⚖️ ETFs vs Shares — Which One Should You Choose?
There’s no one-size-fits-all answer — it depends on your experience, goals, and risk appetite.
| Factor | ETFs | Individual Shares |
|---|---|---|
| Risk level | Lower (diversified) | Higher (depends on company performance) |
| Research needed | Minimal | A lot — you’ll need to track company news and performance |
| Cost | Usually lower | Can be higher if you buy and sell frequently |
| Returns | Steady and average market returns | Can be higher or lower, depending on the share |
| Best for | Beginners and long-term investors | Confident investors who enjoy research |
💡 A Smart Strategy: Mix Both
Many successful EasyEquities investors use a combination of both:
- ETFs for long-term, stable growth
- Individual shares for potential higher returns and personal interest
For example, you might invest 70% in ETFs and 30% in shares you believe in — like a local bank or a growing tech company. This gives you the best of both worlds.
🚀 The Bottom Line
If you’re new to investing, start with ETFs to build a strong foundation.
Once you’re comfortable, you can slowly add individual shares to your portfolio for more control and potential upside.
The most important step? Start now, even with small amounts — EasyEquities lets you invest from as little as R50. Over time, those small, smart decisions compound into real wealth.
💬 Final Tip
You don’t need to be a financial expert to start. The key is to be consistent, stay informed, and think long-term. Whether you go for ETFs, individual shares, or both — your future self will thank you.