Exchange Traded Funds (ETFs) are open-ended investment funds listed and traded intraday on a stock exchange. They aim to track the performance of an index and provide access to a wide variety of markets and asset classes. The key to successful investing is to choose markets and asset classes that will rise in the long run and staying invested.
ETFs are simple tools which can be used for a wide range of investment strategies. An ETF combines the features of a unit trust with those of a stock. Listed on a stock exchange, an ETF invests in a basket of stocks that aims to track the performance of an underlying index. The fact that ETFs are straightforward, flexible and cost effective, it is possible for the entire portfolio to consist only of ETFs.
One of the strategies for value investors ie Strategic allocation is buy and hold. ETFs cover many asset classes and markets and are ideal to be used as portfolio construction tools for long term strategic allocation, especially with their low management fees. Investors who bought ETFs can keep their ETFs indefinitely as long as the ETF is listed.
Investing like most other things are not without risks. ETFs do come with some risks and have different levels of complexity. The more complex ones are unsuitable for the average or new retail investor.
ETFs are simple tools which can be used for a wide range of investment strategies. An ETF combines the features of a unit trust with those of a stock. Listed on a stock exchange, an ETF invests in a basket of stocks that aims to track the performance of an underlying index. The fact that ETFs are straightforward, flexible and cost effective, it is possible for the entire portfolio to consist only of ETFs.
One of the strategies for value investors ie Strategic allocation is buy and hold. ETFs cover many asset classes and markets and are ideal to be used as portfolio construction tools for long term strategic allocation, especially with their low management fees. Investors who bought ETFs can keep their ETFs indefinitely as long as the ETF is listed.
Investing like most other things are not without risks. ETFs do come with some risks and have different levels of complexity. The more complex ones are unsuitable for the average or new retail investor.
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