ETFs
Exchange Traded Funds (ETFs) are investment vehicles that are growing in popularity on the Australian stock market. ETFs work just like managed funds except that they are traded over a stock exchange, such as the ASX. There are many benefits to investing in ETFs, and you will find useful information about trading ETFs here at stockmarket.com.au.
An exchange traded fund is usually made up of a combination of investments designed to track an underlying asset. For example, you can purchase an ETF that will track an underlying commodity, such as with gold ETFs. These may consist of shares in relevant companies or the commodity itself, so the fund will follow relevant trends (in our example, the ETF will follow gold prices).
You can also buy ETFs that follow market indices for local markets (such as the ASX 200), international market indices (such as the iShares FTSE/Xinhua China 25 that tracks the top 25 companies in China), A-REITs (Real Estate Investment Trusts) and various other investments. An ETF may even attempt to track a certain type of portfolio suited to a specific investment strategy, such as portfolio based on growth stocks.
The ETFs you can trade are growing all the time, and they allow you broad access to markets in a form that is cheap, transparent and easily traded on the relevant stock exchange. Take the time to learn about ETFs and consider this unique investment vehicle as a part of your personal trading strategy.
ETFs Articles
For more information about ETFs please take a look at the following articles from stockmarket.com.au:
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When considering different ways to invest your money, why should you take the time to learn about Exchange Traded Funds?... |
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Exchange traded funds are growing in popularity all the time, and they already account for a sizeable portion of the trading landscape... |