Exchange Traded Funds

Exchange Traded Funds (ETFs) have revolutionised the way investors manage their portfolios and their growing appeal is that you can obtain exposure to asset classes that were previously the domain of institutions or very wealthy investors in a cost-effective, efficient way.

Exchange Traded Funds (ETFs) are shares where the underlying assets mirror a specific index or sector, such as the FTSE 100 or the S&P 500. They are also commonly used these days to gain exposure to movements in the prices of commodities such as gold, silver or wheat.

The growth of the ETF market has been staggering and ETFs now account for nearly one-half of all trading in US stocks and ETF assets under management now exceed $3tn.

The advantages for investors are you can buy or sell at any time of the trading day and at the latest price.