What Is Beta and What Does It Mean for Your ETF Portfolio?

Investors utilize a wide range of financial metrics when performing investment analyses. It is critical to have as deep an understanding of an investment opportunity as possible before buying into that security. One of the most widely utilized metrics is known as beta, which is used in fundamental analysis, including in the capital asset pricing model (CAPM), among others. Beta might be one of the most important financial metrics you’ve never heard of. This article will discuss beta, what it is, and what it means for your exchange-traded funds (ETFs).