What is an ETF?

 

Exchange Traded Funds (ETFs) are an efficient and low-cost way of investing in shares or other assets, and have become one of the world's most popular ways to invest.

Here you can learn about ETFs, the benefits of ETFs, how ETFs work and how to use ETFs in your portfolio.


What is an ETF?

ETFs are managed funds that trade on ASX, just like shares. However, while a share represents an investment in one company, ETFs enable you to invest in many companies or assets in one trade, saving you time and money.

 

Why have ETFs become so popular?

 

Easy-access to international markets, asset classes and investment strategies that were previously only available to institutional investors.

Transparency.

With ETFs, you know what shares or other assets are in the fund, along with how the they are selected for inclusion.

Helps to reduce risk.

As your investment in an ETF is spread across a number of shares or other assets, it is considered less risky as you are not reliant on the growth of a single company or asset.

You don't need a lot of money to start investing in ETFs.

ETFs are a way to invest small amounts of money into multiple companies or other assets.

Lower Costs.

The management fees for index based ETFs are usually less than investing in the same exposure of individually purchased companies.

 

Learn more about ETFs