No, these are not some sort of Extra Terrestrial being.
They are an investment option which;
The Global Market for ETFs is expected to exceed US$2 trillion in 2011. They are now trading in the Australian market.
An ETF seeks to reflect the performance of a chosen market index through holding a diversified basket of securities. They do not reflect any stock selection skills i.e. there is no Manager Expertise employed.
There are many advantages of ETFs such as;
Are ETFs for every investor?
This obviously depends on the Risk Profile, but also personal preference may be to own Shares directly.
We think there is a good argument for ETFs as a “core” part of client International Equity exposure.
In subsequest newsletters we will provide further information on the available ETFs and how they fit in a portfolio.
Grant Hodgins - Director