Women and Money Series #3: ETFs, The Bento Boxes of Investing

A bite-sized guide to ETFs, the long-term investment option that’s simple, smart, and satisfying.

Image by takedahrs from Pixabay

Welcome back! This is issue #3 of the Women and Money series, and today we're talking about my favorite investment product: ETFs.

Yes, I do love them, but quick disclaimer before we dive in: this is not investment advice. This article is for educational purposes only, and everything I share is illustrative. You should always do your own research before making financial decisions, okay? Okay.

Now, ETFs: Exchange-Traded Funds.

In the last issue, we compared the stock market to a pizza shop. Today, we’re switching cuisines, and serving up a new investing metaphor to chew on.

Let's start with a little personal story. I first heard about ETFs through one of those Instagram ads: "Expat in Europe and don't know where to invest? Join my free webinar to find out!" So I joined, sat through a free webinar, got a taste of what ETFs were, and then… 30 minutes of the most aggressively sales-y pitch I've ever seen for a €1,000 course. Bonuses on bonuses. Forced emotional hooks. You get the picture.

Needless to say, I didn't buy the course. But I did decide I was going to figure this out on my own. It took me two years, but I did. And now, here I am, helping women in my mentoring program confidently invest in their first ETFs within just a few weeks.

So yes, guidance saves you time and money, but choose someone who inspires trust, not fear of missing out.

Wait, but what if I lose everything?

Before we dive into what ETFs are, let's address the elephant in the room: the fear.

If you're reading this and thinking "This sounds great, but what if I mess up and lose my savings?", that's completely normal. That's why I took two years to start getting my hands dirty, I was also afraid of making a mistake.

Here's the thing: investing always involves risk, but not investing is also a risk. Your money sitting in a savings account is losing value to inflation every year.

The good news? You don't need to invest everything at once. Many platforms let you start with as little as €25–50 per month. Think of it like dipping your toes in the water, not diving into the deep end.

And here's what I wish someone had told me when I started: it's okay to go slow. It's okay to start small. It's okay to learn as you go. Your first investment doesn't have to be perfect, it just has to be a start.

Here's another thing that helps with the fear: ETFs are actually designed to reduce risk through diversification. Instead of putting all your money into one company (which could go bust), you're spreading it across hundreds or thousands of companies, so if one goes bust, the blow is softened by another one performing well. It's like not putting all your eggs in one basket.

So, what exactly is an ETF?

Let's bring in a new metaphor: the bento box.

Imagine the stock market is a giant buffet: overwhelming, crowded, and full of choices. Stocks are like individual dishes: you could grab a single sushi roll, or go all in on teriyaki chicken. But an ETF is like a perfectly packed bento box: a ready-made, balanced meal with a bit of everything. You don't have to choose every ingredient yourself, it's curated, portioned, and easier to digest (pun intended).

In investing terms, an ETF is a collection of stocks (or other assets) bundled together to track a specific index. Instead of trying to pick and manage individual stocks, you get instant diversification, lower fees, and easier access.

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Let's unpack that bento box:

What is an index?

Put plainly, an index is an average of the performance of a selected group of stocks. For example, the S&P 500 index is the average performance of the 500 most valuable companies in the US. It's like the recipe for the perfect bento box: someone has already figured out the ideal combination of ingredients that work well together.

What does "exchange-traded" mean?

This is important because it makes ETFs super accessible. ETFs can be bought and sold on the stock market, just like individual stocks. That means they're liquid (you can easily sell and get your money back if you need it) and available through any brokerage platform. Think of it like being able to grab a quality bento box from any convenience store: portable, affordable, and available whenever you need it.

Mutual Funds vs. ETFs

As we saw in Issue #2, mutual funds are like those chef's tasting menus: carefully curated and actively managed by a professional. The fund manager is constantly trying to beat the market, swapping ingredients, adding exotic components, all in an attempt to create something "better" than the standard recipe.

But here's the thing: all that expertise and constant tinkering comes with a hefty price tag. We're talking 1–2% management fees, sometimes more. And most of the time? They don't actually beat the market consistently.

ETFs are different. They're passively managed, which means no one's trying to beat the market, just to match it. And honestly? That's more than enough.

When you invest long term, the historical 8–10% annual return of the stock market is enough to substantially compound your wealth without the risks and costs associated with trying to beat the market. Just like bento boxes stick to tried-and-true combinations that actually work, ETFs follow proven formulas with much lower fees (typically 0.1–0.3%).

What's in the name? (Feel free to skip this if your eyes are glazing over)

Let's break down a real ETF example, because these things love an acronym and it was one of the things that got me stuck for a long time.

iShares Core MSCI World UCITS ETF USD (Acc)

• iShares Core: The brand, like the restaurant behind your bento box. iShares is run by BlackRock, one of the world's largest investment firms.
  

• MSCI World: The index. It's like saying this bento box features flavors from 23 developed countries. This one includes 1,325 companies worldwide, covering approximately 85% of the developed market.
  

• UCITS: EU regulation for cross-border investing. It means your box has passed hygiene checks and is safe to eat… I mean, invest in.
  

• ETF: Exchange-traded fund, available on the stock market, just like individual stocks.
  

• USD: Currency of the fund, important for fees and currency exchange.
  

• (Acc): Accumulating, this bento reinvests its profits automatically, so your investment keeps compounding. The other type is distributing, where you get your "sides" (dividends) handed back to you to do with as you please. I usually prefer the accumulating ones because it's one less thing for me to think about.
  

Don't worry if this feels like alphabet soup right now. You don't need to memorize any of this to get started. It's just helpful to know what you're looking at.

How do I choose an ETF?

Like choosing a bento box, it depends on what you're hungry for. I recommend two tools to start your research: