ETFs have soared in popularity over the last few years as a popular investment option for novice and experienced investors alike. Short for Exchange Traded.

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Presentation transcript:

ETFs have soared in popularity over the last few years as a popular investment option for novice and experienced investors alike. Short for Exchange Traded Fund, an ETF seeks to track the movements in prices of an underlying commodity, asset, stock index or other asset. ETFs are often viewed as an alternative to Mutual Funds however the two have some key differences. Mutual Funds are run by a team of managers with a specific investment objective – for example outperforming a specific benchmark index such as the S&P 500 or the London FTSE. In order to pay for the services of the management team

Compare all major ASX listed ETF’s Australian Equities Real Estate International Equities Commodities Bonds Currency Converse ETF's

Advantage of ETFs Over Individual Shares One ETF can give exposure to a group of equities, market segments or styles. In comparison to a stock, the ETF can track a broader range of stocks, or even attempt to mimic the returns of a country or a group of countries. ETFs can be more tax-efficient than mutual funds because most of the tax on capital gains is paid on sale and completely up to the investor. Even if the ETF sells or buys shares while attempting to mimic the basket of shares it is tracking. This is because the capital gains from in-kind transfers, seen in ETFs, do not result in a tax charge, and therefore can be expected to be lower compared to mutual funds.

Why Invest In ETPs ETFs provide a great way for investors to add exposure to particular markets, commodities or assets. They are highly diversified so investors reduce the risk of having the poor performance of one particular company bring down their investment. Additionally, they are highly liquid, available on many of the top exchanges in a variety of currencies and feature very low management costs.

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