ETFs: A great tool for DIY investors

Exchange-traded funds (ETFs) are cheaper than unit trusts and look set to become even more popular in the wake of the RDR, says Matthew Partridge.

Exchange-traded funds (ETFs) are cheaper than unit trusts and look set to become even more popular in the wake of the RDR, says Matthew Partridge

Many of those who manage their own money have already cottoned on to the benefits of exchange-traded funds ETFs account for an estimated $1.14trn of global assets under management. But as a result of the RDR, we expect to see financial advisers recommending low-cost products far more often, which means you can expect to hear even more about ETFs in the months ahead. So what are they and why do we like them?

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri