Exchange Traded Funds (ETFs)

ETFs invest in a portfolio of securities, which may include Australian shares, international shares, fixed income securities, listed property trusts, or a combination of asset classes. Reasons for investing

ETFs are open-ended funds, meaning they issue new units, or cancel units, as investors move into and out of the fund, allowing them to maintain on-market prices that correlate closely with the value of the underlying portfolio.

Prices therefore are determined by the value of the assets the ETF holds rather than by other factors such as investor sentiment. More about ETFs

ETFs can be classified as either indexed or actively managed.

Indexed ETFs are generally based on a particular index (such as the S&P/ASX 200), and hold the same shares that make-up the index in order to replicate its performance.

Investors can reduce fund manager risk since the portfolio returns will track the market rather than depend on the fund managers' performance. View index related products

Actively managed ETFs typically have portfolios where the fund manager selects the underlying investments based on a particular investment strategy, for example investing in growth stocks.

Most ETFs are designed to be cost-effective vehicles, applying comparatively low charges to investors. ETF Features

ETFs may be appropriate for investors seeking:

  • Diversification in a single investment
  • Exposure to additional asset classes
  • Surety of pricing relating to the value of the assets held in the fund
  • A cost and tax effective investment
  • Investment in the components of an index or an actively managed portfolio

iShares ETFs - The world's leading companies join Australia's best

Introducing iShares ETFs by Barclays Global Investors. Sixteen iShares funds now listed on ASX, each tracking an established international market index allowing Australian investors to cost effectively access the world's leading companies with just one trade.