WHAT ARE ETFs

During the past decade, the world’s equity markets have seen the evolution of Exchange Traded Funds (ETFs). Internationally, ETFs are well-established, dynamic financial tools that are contributing to the rapid changes in the investment landscape for individuals and institutional investors alike.

An ETF is a portfolio that holds shares in those companies that are represented in key financial indices. This results in ETFs tracking the performance of specific baskets of assets on securities exchanges.

ETFs provide a simple, cost-effective mechanism for investors to participate in stock markets. As open ended funds they permit investors to increase their holdings in the nominated ETF with the same simplicity of trading a share.