ETFs are a smart choice for beginning and expert investors alike.  Here you’ll find everything you need to know, to see if ETFs are right for you.

Investment Vehicles Comparison


An ETF is an investment fund that is traded on a stock exchange.

The aim of an ETF is to track the performance of a specified index (like the FTSE 100) and to provide you with the same return as that index, less fees. As a fund, your ETF investment gives you access to a portfolio of companies (shares), bonds or other asset types (such as commodities or property).

Like a share, an ETF is bought and sold on a stock exchange. Consequently, ETFs offer you the best of both worlds – the diversification of an investment fund, with the easy tradability of a share.

Buying a single ETF gives you exposure to a specific market. Alternatively, you can buy a range of ETFs over several markets in order to implement a more sophisticated investment strategy.

In short, ETFs represent building blocks which can help you create the investment portfolio you want.

What is an ETF?

“Investors buy and sell ETFs in the same way that they are used to buying and selling other listed securities.”

Jonathan Howie
Head of iShares Australia

ETF Creation and Redemption

Ever wonder what allows ETFs to be liquid? The answer is "creation and redemption," the process that lets ETFs trade even when volume is low. Using simple illustrations and a metaphor about flowers, this seven-minute animation will change the way you look at ETFs.

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5 advantages of ETFs


Made up of a broad portfolio of individual securities, ETFs are highly diversified investment vehicles



ETFs are highly liquid, and can be bought and sold during the trading


Cost Effective

Cost Effective
The cost of investing in ETFs is generally lower than an active fund invested in the same market of assets



ETFs offer access to market exposure of a variety of asset classes, both broad and specific



With holdings published as often as daily, ETFs are highly transparent, so you always know exactly what you own

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