ETFs
Exchange traded funds have gained popularity recently as investors look for a cheap and easy way to invest by tracking the index of a particular market or sector.
Global ETF assets under management reached $1 trillion (£656 billion) by the end of 2009, up 45 per cent from the previous year against the MSCI World index rise of 27 per cent.
ETFs have very low running costs compared to funds because no active manager is involved, and the average total expense ration, according to iShares, of a bond ETF is 0.32 per cent.
The range of indices accessible through ETFS is enormous and continues to expand. However, advisers were wary at first because of the amount of risk involved and IFAs have expressed concern about not knowing enough about ETFs and finding them difficult to access.
Each month Money Observer magazine provides a regular commentary and full performance details for all UK-listed ETFS and exchange traded commodities in our Analyse Money section. We’ve also examined in depth the pros and cons of investing in ETFs and look at the best and worst performing sections each month to give you the best advice and support to make the best returns.
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