Exchange Traded Funds - ETF

An Exchange Traded Fund (ETF) is a managed fund or unit trust that is quoted and traded on the ASX stock exchange. ETFs are built like a managed fund but trade like shares, meaning that the pricing is transparent and that they can be bought and sold thoughout any trading day.

ETFs generally aim to track as closely as possible the performance of a given index or asset class, and are generally a cheaper method of investing than managed funds (not always)

Exchange Traded Funds are one of the fastest growing categories of investment products in the world. The reason for this is clear – ETFs are simple, liquid, transparent, low cost and flexible investment products. Below are Plain Talk Guides produced by Vanguard that you may find interesting.

Vanguard Plain Talk Booklet - Managed Funds Vanguard Plain Talk Booklet - Equities Vanguard Plain Talk Booklet - ETF Vanguard Plain Talk Booklet - Indexing
(Click to Open - Source is Vanguard Investments Plain Talk Booklets)

Three popular providers of ETF's in the Australian market is BetaShares, Vanguard Investments, and Blackrock's iShares.