Exchange Traded Funds (ETFs) are one of the fastest growing investment products in the world, offering investors a simple and cost-effective way to achieve diversification in their investment portfolios.
ETFs blend the benefits of both managed funds and shares. They offer efficient, low-cost diversification, combined with flexibility and liquidity.
ETFs can be bought and sold on a stock exchange like shares. And, like managed index funds, they contain a diversified portfolio of securities designed to track specific indices. Some indices are narrow, tracking a single market sector with minimal holdings, while others are as broad as the entire market with hundreds of holdings. This means investors can use ETFs to gain the exposure and diversification they want, quickly and simply.