ETF: everything you need to know to invest better

Content

1. ETF: definition
2. How to invest in ETFs in Belgium?
3. Investing in ETFs for your business
4. Calculate your potential ETF return
5. Documentation
6. FAQ

1. ETF: definition

A tracker or index fund is an investment fund whose strategy is to replicate or “track” the performance of a stock market index.
It differs from traditional investment funds due to its passive approach, which significantly reduces fees and avoids management errors.
Most trackers can be bought on the stock exchange without delays, which is why they are called Exchange Traded Funds (ETFs).

Why invest in ETFs? 4 advantages to know

• Diversification:
  A single ETF allows investment in hundreds of companies across multiple sectors and countries.
• Lower costs:
  Management fees are significantly lower than those of traditional funds.
• Optimized performance: 
  Over the long term, 90% of active funds fail to outperform indexes.
• Accessibility and transparancy:
  ETFs are easy to buy, and their performance is clearly visible in real-time.

Learn more about ETF's in our article: what is an ETF or "tracker".

2. How to invest in ETFs in Belgium?

ETFs, or Exchange-Traded Funds, have become a popular investment method due to their simplicity, diversification, and cost-effectiveness.
In Belgium, investing in ETFs presents an attractive solution for investors looking to avoid the complexity of traditional funds. ETFs provide a naturally diversified portfolio that requires minimal ongoing management.

Investing in ETFs in Belgium: what taxation and advantages?

• Tax Benefits:
  Accumulating ETFs reinvest earnings, allowing investors to avoid the 30% withholding tax on dividends. Additionally, capital gains on investments are currently not taxed in Belgium. However, the new government is considering a 10% capital gains tax on the sale of financial assets such as stocks and bonds. This proposal includes a €10,000 tax exemption for small investors, but it has not yet been enacted into law.
• Global Market Access: 
  Thanks to modern brokerage platforms, Belgian investors can easily access a wide range of ETFs listed on European and U.S. stock exchanges, enabling global diversification.
• Regulatory Simplicity: 
  UCITS-compliant ETFs provide transparency, investor protection, and risk management guarantees.

For more details, read our guide: How to Invest in ETFs in Belgium – 2025 Guide

Which ETF to choose in 2025? Essential criteria for smart investing

Not all ETFs are created equal. Here are the key factors to consider:

• Index Type:
  Do you want to invest in a global index like MSCI World, or a specific sector?
• Total Expense Ratio (TER):
  Look for ETFs with a TER below 0.30% to maximize returns.
• Liquidity:
  Choose ETFs with high trading volume to ensure easy transactions.
• Domicile & Taxation:
  European-domiciled ETFs that comply with UCITS regulations provide better protection for European investors.

For a detailed analysis, check out Active VS Passive ETFs: What's the difference?

5 Steps to invest in ETFs in Belgium

1. Choose an Investment Platform:
   Select an online broker or robo-advisor that suits your needs.
2. Open an Account:
   Complete the registration process by submitting the required documents.
3. Select Your ETFs:
   Choose ETFs based on your investment strategy and risk tolerance.
4. Place Your Orders:
   Buy your selected ETFs by specifying the number of shares and the order type (market or limit order).
5. Monitor and Adjust:
   Regularly track your portfolio and make adjustments if necessary.

For personalized assistance, Easyvest offers diversified ETF portfolio management services. Discover our approach: How It Works?

3. Investing in ETFs for your company

Investing through your company can be effective for optimizing taxation and growing your capital. In "Investing with your company," we explain why many business owners choose to invest their liquid assets in the stock market. 

Optimizing taxation with the liquidation reserve

The liquidation reserve allows Belgian SMEs to set aside a portion of their profits at a reduced rate (10%), enabling them to later withdraw these funds as lightly taxed dividends (5% after 5 years). This is a useful tool for optimizing a company's cash management while anticipating future needs. 

But should you invest as a company or as an individual? 

Download our free template and discover the best solution for your situation.

DTI vs. ETF: Which solution to choose?

Many corporate investors also consider the DTI (Definitively Taxed Income) regime, which allows avoiding double taxation on dividends received under certain conditions. However, this solution imposes strict constraints on eligible securities and the holding period. 
 
Conversely, investing in ETFs through a company offers an often more flexible, diversified, and tax-optimized alternative. 

• Immediate:
  Diversification across multiple markets without the constraint of individual stock selection 
• Reduced Fees:
  compared to active funds or direct stock investments 
• Long-term Strategy:
  suited for passive and efficient management 

Discover how to structure your corporate portfolio with ETFs in our article: The Definitively Taxed Income (DTI) Regime, a Misleading Option? 

4. How much can an ETF investment yield?

5. Documentation

6. FAQ

Discover the frequently asked questions on ETFs