Exchange Traded Funds (ETFs) offer diversified and low-cost access to the world’s investment markets. ETFs are designed to mirror the performance of specified indexes, less the management fees.
The risk profile of ETFs is derived from its underlying holdings, and since you get a diversified selection of stocks, this can potentially help reduce risk compared to individual stocks.
ETFs have the following key features:
In recent years, the ETF market in Australia has expanded considerably and there is now a wide variety of ETFs available, covering most asset classes and asset sectors. You can access ETFs that cover:
Podcast: 39 min listen
First published June 2019
ETFs now account for a substantial proportion of daily turnover on the ASX and are often the first investment for investors looking for exposure to the sharemarket or a new sector.
Their promise of low fees and easy access appeal to a wide variety of investors – but as with any investment product, there are complexities and strategies that can improve, or reduce, their value in your portfolio.
ETF expert and CEO of ETF Securities Australia, Kris Walesby, explains his views on:
Explore ETFs and how they compare to other investments.
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