What are ETFs

Capital at risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.

‘Exchange Traded Funds’ can be an effective way to invest

 

ETFs are investment funds that aim to mirror the performance of a market index. A market index follows the overall performance of a selection of investments. The FTSE 100 i...

How can they do that?

Groups of securities are effectively collected in a basket, with the amount of each security in the fund weighted by size to precisely replicate a particular index.

What are ETFs

Advantages

Flexibility
ETFs provide exposures to suit both your core portfolio and tactical investing
Cost
ETFs often have lower management fees than active funds
Diversification
ETFs offer a single source of exposure to returns from diverse securities
Transparency
ETFs show every security currently in the fund, so you know exactly what you own
Liquidity
ETFs are listed on public stock exchanges and can be traded at any time during market hours
Access
ETFs allow instant access to international markets

Risks

There are different types of ETFs, even amongst those that track the same index, so be sure to understand what those are as well as considering the suitability of an ETF against your individual needs and risk tolerance before purchasing. BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information. Investment should be made on the basis of the relevant Prospectus.

  • Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.
  • The price of the investments may go up or down and the investor may not get back the amount invested. Your income is not fixed and may fluctuate.
  • The value of investments involving exposure to foreign currencies can be affected by exchange rate movements.
  • Diversification does not ensure protection against investment loss.

 

 

The variety of available ETFs mean that you could

 

What are ETFs Icon What are ETFs Icon What are ETFs Icon What are ETFs Icon
invest in a single
ETF as a core
exposure to
complement your
portfolio.
fine tune your
preferred
exposure in a
particular region,
commodity or
asset class.
build an entire
to your
portfolio, releasing
capital for active
investing elsewhere.
create a solid core
relatively
inexpensive core
to your portfolio
releasing capital
for more active
investing.