How to choose an ETF Icon
How to choose an ETF

What is your investment objective?

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Grow wealth over the long term
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Generate an income
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Benefit from short-term market movements
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Time horizon
Plus
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Appetite for risk

Things to consider

1
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Find an ETF that tracks an index to reflect your investment strategy
2
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How much are you willing to pay to track the index you have selected?
3
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Make sure you know how your ETF is structured
Physical Replication
The manager of the funds physically buys and holds all or a representative subset of the shares that make up the index

Positive
Positives
More transparent, easier to understand

Negative
Negatives
Can limit access to certain markets and exposures
Synthetic Replication
The manager uses derivatives – a contract between two parties related to a particular asset – rather than physically buying the assets

Positive
Positives
Enables access to markets and exposures that physical replication may not

Negative
Negatives
Counterparty risk – investors could be exposed to the risk that a single financial institution – the counterparty – may not be able to pay the index return

How to Buy ETFs

Trading ETFs is just like trading a stock. Discover how to trade ETFs today

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Why ETFs

ETFs are a simple and cost-effective way to achieve diversification in your investment portfolios.

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