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What Are The Advantages Of ETFs?

The advantages to Exchange Traded Funds are that they are the cornerstone of a successful strategy known as passive investing. Another advantage is that you can buy and sell them like a stock. They are also traditionally safer than buying individual stocks. When adding Exchange Traded Funds to your portfolio you also have much smaller fees than actively traded investments like mutual funds.

ETFs can hold assorted multiple assets like bonds or commodities. The best way to get returns from ETFs is to buy them as appropriate for one’s portfolio, and generally, either hold or trade them as needed. Your Personal Advisor will be able to guide you through the process and keep you updated on Market news. Exchange Traded Funds are generally thought of as long term investments compared to stocks or bonds.

Exchange Traded Funds are ideal for small investors because of their many benefits like low expense ratios, abundant liquidity, wide range of investment choices, diversification and a low investment threshold.

Diversify In Asset Classes

An ETF is a fund that is managed by our experienced Advisors, that you can be bought or sold on global exchanges. Most of our ETFs are passive investments that do not try to outperform the market. The role of our fund managers is to track the value of indexes or specific commodities in the funds. The value of the ETF goes go up or down with the index or asset our Advisors are tracking.

When you invest in an ETF, you don’t own the underlying investments. You own units in the ETF and the ETF provider owns the shares or assets.

ETFs are a transparent investment. They publish their Net Asset Value daily on exchanges. This can help the investor track how the underlying asset are performing and if the price of the ETF is close to the Net Asset Value.

If you are interested, one of our Investment Managers can help you learn more about how ETFs work.