simple
steps
1.
How well do you know your provider?
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How well do you know your provider?
Evaluate the ETF managers ability to deliver index performance.

A well-managed ETF minimises both tracking error and tracking difference to deliver accurate index performance.

Select a product from an experienced global investment leader with a proven track record.
2.
What’s in your ETF?
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What’s in your ETF?
Index definition methodology impacts economic exposure and outcomes.

When it comes to ETF benchmarks, it may seem like one index is as good as another. Understanding the difference between indices is key to selecting the most appropriate ETF to achieve your investment objectives.
3.
What are the implications of the
ETFs structure?
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What are the implications of the ETFs structure?
It’s important to consider the following:

  • A structure that provides transparent benefits to the unitholder, minimising unintended risks or costs.
  • Product design that balances desired exposure and helps to ensure cost and tax efficiency and liquidity.
  • An independent, dedicated ETF structure that helps insulate ETF unitholders from unintended tax consequences and inherent conflicts of interest.
4.
Can you trade when you need to?
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Can you trade when you need to?
ETFs benefit from multiple layers of liquidity resulting in potentially lower entry/exit costs.

It’s critical to examine the real liquidity of the ETF through both its market volume and the liquidity of the underlying securities, as well as assess how accessible liquidity is during volatile market conditions.

The ETF provider should show support for liquidity via strong relationships with index providers and market participants.
5.
What does it really cost?
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What does it really cost?
Assessing the cost of an ETF requires investors to look beyond management costs.

While management costs are important all other implicit costs such as trading, market impact and rebalancing should be examined to determine the true total cost of the ETF.