magazine archive
magazine archive
Exchange-Traded Funds
The ETF aiming to profit from less liquid stocks
Thursday 06 Jun 2019Liquidity is typically seen as the investor’s friend. It represents the ease at which you can buy and sell shares quickly and easily, and without causing a drastic change in the price. However, there is research which suggests less liquid investments can generate premium returns – in part as...
Using low-cost ETFs to gain exposure to sectors
Thursday 30 May 2019There is an ever-growing list of exchange-traded funds (ETFs) providing investors with low-cost access to specific industry sectors. While the costs may be slightly higher than broad market-based ETFs such as those tracking the FTSE 100, these sector products can be cheaper than actively-managed...
Using low-cost ETFs to generate an income from the market
Thursday 23 May 2019Investors looking to get a regular income from their portfolio have the option of investing in a range of low-cost exchange-traded funds (ETFs) specifically designed to track certain types of dividend-paying assets. However, not all dividend-focused ETFs are created equal. In this article we will...
Why there may never be zero-fee ETFs in the UK
Thursday 09 May 2019Exchange-traded funds (ETFs) that don’t charge a fee can sound too good to be true, and for people in the UK this may well turn out to be the case. Zero-fee ETFs, as the name suggests, are funds that do not come with any product charges. Fidelity was the first company to offer zero-fee ETFs when it...
Why certain types of ETFs are riskier than you think
Thursday 28 Mar 2019In 2018, only 6% of flows went to synthetic exchange-traded funds (ETFs) yet approximately £1 in every £5 invested in ETFs is in a synthetic product according to data from Lyxor ETF and Bloomberg. Physical and synthetic replication are terms used to describe how ETFs manage to track a market...
Should you worry about ETFs that only track a handful of stocks?
Thursday 22 Nov 2018One of the major attractions of exchange-traded funds (ETFs) is that they offer investors the opportunity to track virtually any market, asset or industry they choose. But investors should be aware that the more far-flung or niche the index they choose to track, the fewer stocks it is likely to...
We reveal the cheapest ETFs on the market
Thursday 01 Nov 2018Cost-conscious investors have been ploughing billions of pounds into exchange-traded funds (ETFs) over recent years, while many actively-managed funds have suffered significant outflows. Improving transparency within the funds industry has made it easier to compare the costs of various investments...
Five ETFs that could help pay the bills in retirement
Thursday 27 Sep 2018Tracker funds like exchange-traded funds (ETFs) are best-known for their ability to mirror the ups and downs of the stock market, so they might not be your first choice for an income investment. But retirees may do well to consider investing in ETFs not just for potential growth, but for reliable...
Is smart beta a smart bet?
Thursday 07 Jun 2018‘Smart beta’ is gaining traction as a method of index investing as investors adopt a growing range of strategies that have been used to generate outperformance by active managers for years. Some $6bn flowed into smart beta exchange-traded funds (ETFs) in Europe last year, taking total assets under...
When an ETF becomes too popular
Thursday 11 May 2017There are some incredibly niche exchange-traded funds (ETFs) available to investors. For example there is an ETF that tracks drone manufacturers. The US-listed PureFunds Drone Economy Strategy ETF tracks the Reality Shares Drone Index which comprises 47 companies ‘actively involved in drone-related...