‘Exchange Traded Funds’ are an easy way to invest
ETFs are investment funds that aim to track the performance of a specific index, such as the Swiss Market Index (SMI).
An index represents the total return of a particular group of securities – often shares.
How do they do that?
A group of securities are effectively collected in a basket with the amount of each security in the fund weighted by size to precisely replicate a particular index. An ETF is bought and sold on a stock exchange, like a share.
Advantages
Flexibility
ETFs provide exposures to suit both your core portfolio and tactical investing.
Cost-effective
ETFs often have lower management fees than active funds and the costs are simpler to calculate.
Diversification
ETFs offer a single source of instant exposure to returns from diverse securities.
Transparency
ETFs show every security currently in the fund so you know exactly what you own.
Liquidity
ETFs are listed on exchanges and can be traded at any time during market hours.
Access
ETFs allow instant access to international markets.
The variety of available ETFs mean that you could
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| invest in a single ETF as a core exposure to complement your portfolio |
fine tune your preferred exposure in a particular region, commodity or asset class |
build an entire investment portfolio at a lower cost using ETFs |
create a solid, relatively inexpensive core to your portfolio releasing capital for more active investing |