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What is ETF investing?
An ETF is an Exchange Traded Fund. They are a unique pooled investment vehicle that lets the investor express a view on a basket of products or asset group.
This could be an index, such as the actively traded SPDR S&P 500 ETF that tracks the performance of the S&P 500 index or perhaps the ETF Gold Trust, the Aberdeen Standard Physical Gold Shares.
Perhaps you are looking at getting exposure to Telecommunications. The iShares Global Telecom ETF looks to track an index of equities in the communication sector.
Why trade ETFs
You invest in an ETF the same way that you invest in shares or stocks. They are quoted with an offer and bid price allowing you to buy and sell with ease.
The real beauty of an ETF is being able to gain exposure to a sector with limited funds. Taking our iShares Global Telecom ETF as an example, the ETF has a balanced holding in 73 different products. You would need a lot of separate trades to gain this exposure.
It is also professionally run and monitored with a fund manager keeping track of market trends and monitoring asset valuation and allocations.
Can I trade ETFs through Pepperstone?
At Pepperstone there are more than 100 ETFs to choose from. The sectors include:
- Asia Pacific
- UK, Europe and the Middle East
- North America
- South America and Africa
- Banks and Financials
- Bonds
- Emerging Markets
- Energy and Industrial
- Indices
- Mining and Commodities
Trading ETF CFDs through Pepperstone means that you trade on the underlying exchange price. You are expressing a view on the ETF without any physical ownerships. There are some key advantages and risks. For more key information about trading ETFs please click here.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.