We’re big fans of exchange-traded funds (ETFs). ETFs, which are listed on the stock market, are generally ‘passive’ funds – they aim to track the performance of a particular index or commodity, rather than trying to beat the market, as an ‘active’ fund does.
So, if the FTSE 100 rises by 10%, you’d expect a FTSE 100 ETF to rise in value by roughly 10% too. The big advantage of ETFs is that they offer exposure to a wide range of markets without having to shell out a hefty fee to an active manager, who will [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 4 week FREE trial to get instant access.