What are ETFs: Starters guide for investors

What are ETFs?

Exchange Traded Funds (ETFs) trade on the stock exchange like individual shares. They can provide you exposure to a wide range of companies, assets or industries in one simple investment. ETFs are often constructed with investments that follow an index or a specific theme, for example an ETF may track the ASX200 and invest in the top 200 companies listed on the ASX or they may choose to follow a theme such as Technology and invest in companies in that industry or sector, or they may choose to invest in Corporate Bonds.

How do I invest in ETFs?

ETFs are traded on the stock exchange like shares. To buy ETFs you need to use the services of a ‘broker’ to complete the actual transaction of buying or selling shares. A…

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