Flaming ETFs

The FSA recently passed comment on the perceived strengths of ETFs, but it is important to ascertain when ETFs are a suitable investment and when they are not.

Over the last year, ETFs have become an increasingly popular option for many. The structure of an ETF – a portfolio of securities such as stocks, bonds or alternative assets that aims to track the performance of a specific market index – is appealing for many and explains in part the reason for the high level of interest in these investments. The headline prices of ETFs have also played a major role in their increasing popularity. With ETFs topping the current ‘What’s Hot’ list it is no surprise the FSA has commented on the perceived strengths of ETFs within the recent RDR paper saying: ...