An ETF or an Exchange Traded Fund is, as the name implies, a fund. These funds are listed and traded on exchanges such as the FTSE or DJIA.
In their simplest form ETF's seek to mirror the performance of an index. For example the FTSE 100. The performance of the FTSE 100 ETF will be correlated directly to the performance of the index.
ETF's are usually low cost and trade like stocks, so you can buy and sell them quickly.
ETF's are an increasingly popular investment vehicle and as the demand has increased so have the amount of ETF's available in the market place, also the diversity of underlying asset has increased. ETF's can now be bought leveraged, long or short on the market, and in quite exotic asset classes, for example, new energies.
To understand how ETF's can benefit you, save you money and give you access to interesting investment classes take a look at our trading platform provided by iFast. Details are here
Article written by Mark Paine, Meyado Singapore
About Me
- Mark Paine
- I joined Meyado Private Wealth Management as an international financial adviser in 1993. I have lived and worked in the USA, Europe, the Middle East and currently reside in Singapore in South East Asia where I am Managing Director of Meyado Pte. I am a qualified Financial Representative in Singapore under the MAS Financial Advisers Act as well as holding UK FSA CFP and FPC examinations and a BSc in Business and Law from the University of Hertfordshire in the UK. You can contact me at markpaine@meyado.com
