Exchange Traded Funds (ETFs)
Using ETFs in investment portfolios
Investing with ETFs
The ease, speed, flexibility, diversification and low costs of indexed ETFs make them an effective investment solution for you to:
- Construct an investment portfolio
A combination of ETFs covering different asset sectors and markets can be used to build a robust, diversified investment portfolio at a low cost.
- Build the foundations of a portfolio
Use ETFs to create a solid, diversified foundation or ‘core’ of an investment portfolio, complemented by other investments, like direct shares or actively managed funds to potentially seek extra returns. Find out more about the core satellite investment strategy.
- Rebalance a portfolio
Over time portfolios can move away from their initial asset allocations and become unbalanced as the value of different assets changes. ETFs can be used to quickly and easily correct these imbalances by purchasing the exact asset types required.
- Trade in the market
An ETF investor can rapidly deploy cash into the market, trade as required at market prices and use the ETFs as collateral for margin lending.
