Exchange Traded Funds
In an effort to empower investors with the knowledge necessary to invest in ETFs we put together this simple guide. Here we explain some frequently used terminology and make clear the basic concepts behind…
Exchange Traded Funds (ETFs) are a simple and effective way to invest in the financial markets. The benefits of ETFs include low costs, access to various asset-classes, transparency, tax efficiency and are easily bought and sold. Due to these advantages there has been an unprecedented expansion in the number of ETFs available to investors and the amount of money flowing into ETFs in recent years.
Exchange Traded Funds are financial products that, in thier most common form consist of a large number of stocks selected using a set of per-determined investing rules and trade like a stock on an exchange. The majority of ETFs are inexpensive, easily bought and sold, tax efficient and provide smooth access to various markets. To understand these products,we look at the most frequently used terms and their basic mechanics: