ETFs benefit from lowest expense ratios

exchange traded funds

The market for ETFs is growing with investors increasingly seeing them as better alternatives to unit trusts and Oeics

Every share of an ETF represents ownership of a basket of securities designed to replicate the performance of a specified index including dividend payments. ETFs are listed on recognised exchanges and traded throughout normal stockmarket trading hours. One of the main attractions of an ETF is the broad diversification it offers through passive replication of an index. ETFs can offer full index replication whereby the fund holds every stock in the same proportion that it represents in the index. As a result the deviation or tracking error against the underlying index should be negligible, ...