Exchange traded funds
Sick of picking stocks? Here’s a way that’s gaining in popularity.
It’s a difficult time to be stock picking at the moment so many retail and professional investors are turning to buying into exchange traded funds, or ETFs.
I have family and friends who want to invest in the sharemarket but don’t have the expertise to stock pick or don’t have the time or inclination. So if you want exposure to the Australian sharemarket or even the US market without spending the time to pick individual companies, there is a way to do it and that’s through ETFs.
Low fees
ETFs first caught my eye years ago due to the low fee structure compared to an actively managed fund. This is because most ETFs involve simply replicating an index. Since you don’t need many money managers to follow an index, fees are cheap. Recently, I’ve noticed that part of gold prices rising has been the record holdings in physical gold due to ETFs buying. ETFs actually hold the underlying asset. Read more