• First For Trading

What are ETFs?

  • One of the most cost effective ways to invest

  • Instant access to whole markets, sector & styles at very low cost

  • Trade intra-day with or without leverage

Simply, ETFs are very low cost, diversified funds that trade as a single security (share). ETFs give you exposure to the components of an index in which you wish to invest e.g. the FTSE100 index. They combine the tradability and liquidity advantages of stocks with the low costs and diversification benefits of index funds in one product.

ETFs are therefore a simple and straightforward way for any investor to gain immediate diversified exposure to a particular market, region, sector, asset class and current investment strategy, all through one simple transaction. If you want to invest or rebalance part of your portfolio towards the US, the Far East, European small companies, telecoms, natural resources, fixed interest or healthcare, utilities – (the choice of ETFs available is extensive), then you can simply “buy the market” that you want, when you want, through an ETF.

Most ETFs can be held tax efficiently in an ISA or SIPP meaning that any capital gains and income are free of tax. ETFs are also regulated as authorised open-ended investment funds but have the additional advantage that they can be traded ‘intra-day’ ( i.e. throughout the trading day) on the stock exchange in the same way as any other listed tradable security e.g. shares.

5 views0 comments

Recent Posts

See All