How to Invest in Bursatil Index Funds in 2025

Find out how to invest in the Bursatil index, learn which trading platforms have the lowest fees, and what’s the easiest way for beginners to get started.
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Updated on Dec 17, 2024
Reading time 3 minutes

Putting your money into an index is a simple and convenient way to create an investment portfolio, especially if you’re just getting started with investing.

An index, like the Bursatil, provides a snapshot of a particular section of the stock market, and by investing in it, you gain exposure to a diverse portfolio of stocks, which can help reduce risk compared to investing in individual companies.

One of the best ways to invest in the Bursatil index is through Exchange-Traded Funds (ETFs). ETFs are designed to track the performance of an index and are highly convenient for beginners. They allow you to buy shares in the Bursatil with just a few clicks.

Read on to learn how to invest in the Bursatil effectively and explore the best methods to do so. Compare different investment strategies, available ETFs and index funds, and find out why Bursatil index investing is a low-cost, relatively low-risk approach to growing your wealth over time.

How do I invest in the IBC index?

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The easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Bursatil ETF. This guide explains how to do it:

Step 1. Sign up to eToro

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We recommend using eToro to invest in Bursatil. Create your trading account and deposit some money using a payment method of your choice.

This is a fairly quick process that takes just 15-30 minutes, but you need to supply a form of photo ID to verify the account before you can use it.

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4.6
eToro
Min. Deposit $100
Fees 1%
No. assets 50+
Demo account Yes

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Step 2. Decide how to buy Bursatil

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This boils down to choosing between an Bursatil ETF or buying the stocks in the index manually. ETFs are generally better suited to investors who want to passively track the Bursatil’s performance. Individual stocks offer a greater range of trading options and flexibility.

Step 3. Invest in the Bursatil

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Sign into your trading account and search for the Bursatil. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.

Step 4. Monitor your investment

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When you buy a stock, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.

Your trading account will show the price change in the Bursatil since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the Bursatil and close your position, ideally at a profit!

How much does it cost to invest in the Bursatil index?

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From $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD*, or share, plus the fees associated with it.

*Note that CFDs are not available to US investors.

ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.

All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars. 

Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.

The different ways to invest in the IBC

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As we mentioned above, there are numerous ways to put your money into the Bursatil. ETFs and individual stocks are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.

Bursatil ETFs

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An ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.

An Bursatil ETF is one way of investing in the Bursatil. It’s simply an investment fund that mirrors the performance of the Bursatil. When you buy shares in the fund, the value of your investment will rise or fall with the Bursatil itself. 

ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the Bursatil index, because you can buy or sell shares in the fund throughout the day.

Bursatil index funds

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An index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Bursatil. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.

However, there are a couple of differences. Bursatil index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in Bursatil index funds.

That means an Bursatil mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.

Bursatil CFDs (non-US users only)

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CFDs (contracts for difference) are a way to speculate on Bursatil price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the Bursatil – but it’s separate from it.

As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.

All of this means Bursatil CFDs offer the potential to outperform a fund that passively tracks the Bursatil’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.

Bursatil futures

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Futures contracts are agreements to buy or sell the IBC at an agreed price on a set date in the future. Bursatil futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.

Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.

Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the Bursatil then you might want to short the Bursatil so that you still make some money if the price falls.

Bursatil stocks

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Another way to invest in the Bursatil is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the Bursatil in order to get broad exposure to its performance.

The most heavily weighted stocks in the Bursatil tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.

One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.

The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.

Where can I invest in the Bursatil index?

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According to our expert research, eToro is the best ETF broker to invest in Bursatil index funds. 

Both Bursatil ETFs and Bursatil CFDs are available to invest in through eToro .

Here are three more places to buy the Bursatil, ranked according to their cost, security, and features.

We found 4 online brokers for users based in

eToro review
4.6
eToro
Min. Deposit $100
Fees 1%
No. assets 50+
Demo account Yes

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Plus500 review
4.5
Plus500
Min. Deposit $100
Fees From 2%
No. assets 2800+
Demo account Yes

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CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

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Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

Should I invest in the Bursatil index? 

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Yes, Bursatil investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It’s also ideal if you don’t have the time to actively manage a portfolio of stocks, because you can simply invest in a bunch at the same time and then leave it alone.

The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The Bursatil is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.

What are the advantages of investing in the Bursatil index?

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An index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the Bursatil index:

  • Get a ready made portfolio of stocks. Investing in the IBC gives you an instant portfolio of stocks, including all companies that list on the Bursatil index. This means your investing fortunes aren’t tied to the performance of a single company and the risk is spread out across lots of businesses.
  • An index is easy to invest in for beginners. It’s quite simple to invest in the IBC using a CFD broker. It’s like buying a single share and significantly cheaper than investing in all the companies individually.
  • You don’t need to spend time researching individual stocks. The big advantage of an index is that you can invest in a relatively safe way without dedicating lots of time and effort to research. 
  • The companies on the IBC are the largest companies in Venezuela. Larger businesses are generally more secure and stable, and you get a bit more security because there are lots of different companies. The performance of the stocks that do well balances out those that do poorly – at least in theory.

What are the disadvantages of investing in the Bursatil index?

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The main risk of investing in the Bursatil is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of Bursatil investing.

  • Venezuela is an unstable economy with high inflation. Venezuela has gone through a tough time over the last couple of decades. The inflation rate has run above 1000% at times, to effectively render its currency worthless. There’s a lot of risk to putting your money into an economy in that state.
  • All the companies are tied to the Venezuelan economy. All the companies that list on the Bursatil operate in Venezuela, so they are inextricably linked to the fortunes of the Caracas economy as a whole. The IBC doesn’t provide much diversification as a result.
  • The IBC index is much smaller than most indices. There are only a few companies on the Bursatil and few people trade it. That means it’s likely to be much more volatile than a big index, such as the S&P 500.

FAQs

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01

Should I invest in the Bursatil through an index fund or ETF?

02

How should a beginner invest in the Bursatil?

03

Can I invest in the Bursatil from the UK?

04

Does the Bursatil pay dividends?


Sources & references

James Knight

James Knight

Editor of Education

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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets. His main focus is on improving financial literacy among casual investors. He has been with Invezz since the start of 2021 and has been...