1. Whatever your investment strategy or experience level, ETFs can be a convenient, low-cost way to build an investment portfolio.
2. An ETF operates like a wrapper around multiple assets – whether they’re shares, bonds or commodities – giving you exposure to the performance of multiple investments in one trade.
3. When you buy or sell an ETF, you’re buying and selling an ETF ‘unit’, and these trade on the stock exchange during market hours.
4. There are many kinds of ETFs – you can use them to gain exposure to growth, income, or defensive investments, or for tactical exposure to specific assets, regions, or themes.
5. ETFs are generally low cost – allowing you to buy and sell various assets in fewer trades than if you were buying and selling individual shares.
6. ETFs offer many potential benefits:
- They remove the need to pick individual shares or investments
- They can offer instant diversification
- ETFs are bought and sold on an exchange – just like shares
- They are generally lower cost than traditional actively managed funds
- They can offer access to international and other hard-to-reach markets.