Get your hands on a collection of shares that follow market themes, one time!
At a first glance an ETF might look a bit like its distant relative: a unit trust. But unlike its cousin, this sexy little portfolio of different shares, bonds, and other instruments, is single and ready to mingle – it can be traded on stock exchanges (like the JSE) as one instrument. The most common ETFs are designed to track the performance of a market benchmark or index by mirroring the makeup of that index in a portfolio.
Exchange-traded funds (ETFs) are passively managed investment funds that track the performance of a basket of pre-determined assets and is a collection of individual assets. That can invest in stocks, commodities, bonds, currencies or a mixture of different assets to give you basically anything your heart desires… In the investment world. Watch the video to learn more.