Investing in Exchange Traded Funds - ETFs

1 - I can do better 2 - Jury's out 3 - Pretty darn good 4 - Splendiferous 5 - Awesometastic by 3 people | Log in to rate

Ranked #3,474 in Business, #85,209 overall

How To Invest in Exchange Traded Funds - ETFs

Exchange Traded Funds or ETFs are an alternative to other kinds of collective investment funds, such as Mutual Funds, Unit Trusts or Investment Trusts ETFs are a relatively new invention, especially in the UK, but in the USA there are many hundreds to choose between and the number of available funds is continuously increasing. ETFs are passively managed, either tracking an index or using some sort of screening algorithm to determine the undelying investments. They have the advantage that, as a consequence, they have far lower fees and total expense ratio.

Pros and Cons of ETFs 

Exchange Traded Funds are similar to Mutual Funds or Unit Trusts except the price is quoted continuously through the trading day, like Investment Trusts rather than just once and there is no real manager, because they simply track an index (or other more complex screening algorithm) using computers, therefore have very low annual fee and small bid/offer spread. This makes them very good for short term trading.

The main disadvantage is you will have exposure to the whole index including badly performing companies or assets, whereas with a managed fund, if the manager is good, you may be able to avoid exposure to the badly performing assets (managers however do not have a good reputation for justifying their fees)

ETF Investment Books 

ETF Strategies and Tactics: Hedge Your Portfolio in a Changing Market

Amazon Price: $40.46 (as of 11/29/2009) Buy Now

Understanding Exchange-Traded Funds

Amazon Price: $15.56 (as of 11/29/2009) Buy Now

Exchange-Traded Funds For Dummies (For Dummies (Business & Personal Finance))

Amazon Price: $16.49 (as of 11/29/2009) Buy Now

The ETF Book: All You Need to Know About Exchange-Traded Funds

Amazon Price: $19.77 (as of 11/29/2009) Buy Now

How to Buy ETFs 

ETFs are available from any stock broker in the same way you might buy a share, stock or managed fund. They are also listed in many good financial publications such as the Financial Times.

There are many companies providing ETFS including:

  • iShares Plc

  • Lyxor ETF

  • ETFS Securities
  • Investment Articles 

    What Can You Invest In? 

    ETFS can be used to gain exposure to:

  • Stock indices such as the S&P, Dow, FTSE

  • Bond indices in many countries

  • Commodity Prices e.g. Gold, Silver

  • House Prices
  • Investment Books 

    Bond Investing For Dummies (For Dummies (Business & Personal Finance))

    Amazon Price: $16.49 (as of 11/29/2009) Buy Now

    Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

    Amazon Price: $12.99 (as of 11/29/2009) Buy Now

    RICH DAD POOR DAD

    Amazon Price: (as of 11/29/2009) Buy Now

    Alternatives to ETFs 

    More Finance Articles 

    Some Examples 

  • iShares £ Corporate Bond (SLXX)

  • iShares FTSE 100 (ISF)

  • iShares FTSE UK Dividend Plus (IUKD) - High yielding shares

  • iShares £ Index-Linked Gilts (INXG)

  • iShares FTSE UK All Stocks Gilt (IGLT)

  • ETFS Silver (SLVR)

  • Gold Bullion Securities (GBS)
  • Please Leave Some Feedback 

    submit

    About Me... 

    Lensmaster AndyPo has been a member since July 7 2008, has rated 1,925 lenses, favorited 1,849, and has created 202 lenses from scratch. This member's top-ranked page is "Do You Really Need a New Phone: Palm Treo vs Palm Pre,Pro/apple iPhone". See all my lenses

    Check out these great lenses...

    lens image
    Make Money From Home
    There are many ways to make money from home and there is a lot of money out there on the internet to be had, but there are also a lot of people chasing the money. This article is about my research: The methods I have tried and the results I have achi... view lens
    lens image
    Wildlife & Travel Photo Gallery
    After many years of traveling the world and taking photos, mostly of wildlife and nature and I have published some of them in a Zazzle Gallery. Here is a selection of some of these photographs and links to the associated Zazzle productions; cards and... view lens
    lens image
    Safari and Wildlife Viewing
    Here is a selection of articles and reviews of safari holidays and wildlife viewing vacations in various parts of the world: Africa (Namibia and Botswana), Borneo, Canada, USA and Asia... Lots of photographs, travel tips, advice and recommendations,... view lens
    lens image
    European Travel Highlights
    A quick photographic tour of Europe to some of my favourite bits and links to a few more of my more detailed european travel articles, including: Tuscany in Italy Loire Valley and Brittany, France Gibraltar, U.K. (Near Spain) Richmond, London, Engla... view lens
    lens image
    Great Investment and Money Making Ideas
    Have you ever been stuck for investment ideas? What should I invest in at the moment? Which stocks are good value? Which markets or investment vehicles should you invest in?This article attempts to cut through some of the jargon and provide some safe... view lens

    by AndyPo

    Hi, I am Andy. I live in the U.K. but have worked and travelled all over the world. I am a semi-professional wildlife and travel photographer (i.e. I... (more)

    Explore related pages

    Create a Lens!