magazine archive

magazine archive

Exchange-Traded Funds

Will ETFs reinvest dividends for you?

Thursday 05 Mar 2020

Just as when you invest in a regular mutual fund, if you’re looking to put money in an exchange-traded fund (ETF) it’s also important to choose the right share class. An increasing number of ETFs, certainly those from big providers like iShares and Vanguard, will have either accumulating (acc) or...

Guess how many ETFs have beaten Fundsmith since it launched?

Thursday 06 Feb 2020

Since its inception in November 2010 Terry Smith’s Fundsmith Equity Fund (B41YBW7) has been one of the fund management industry’s big success stories. It has achieved a return of 386.4% and has attracted so much money from investors that it now commands more than £18bn of assets under management...

Why the 'lowest cost' ETFs aren't always the cheapest

Thursday 16 Jan 2020

How low can you go? Typically asked during a game of limbo, it has been a question increasingly posed by investors in exchange-traded funds (ETFs). Pitched as a simple way to invest at a cheaper price than using the services of a fund manager, ETFs can invest in stocks for a charge as low as 0.04...

ETFs to track small caps in the US, UK and Japan

Thursday 05 Dec 2019

There is a reason why some investors think the best things come in small packages. Smaller companies, just by virtue of their size, have more significant growth potential and could increase their revenue at a rapid rate if things are going well. With higher reward comes higher risk however, and...

Why trackers have a role in holding companies to account

Thursday 14 Nov 2019

Rapid growth in exchange-traded funds (ETFs) has made a number of their providers some of the biggest investors in the world, particularly in markets like London and New York. But as these ETFs grow in size and the stakes of fund firms like BlackRock and Vanguard carry more weight in a whole range...

Why investors are worried about getting their money back from ETFs

Thursday 24 Oct 2019

Exchange-traded funds (ETFs) can be a great way for people to get started with investing. This is mostly because of their simplicity, low cost and the ease at which they can be bought or sold, which is known as liquidity. But that last point has some investors worried, as rising market volatility...

How to build a diversified portfolio with just three ETFs

Thursday 10 Oct 2019

One of the great things about exchange-traded funds (ETFs) is that they are often widely diversified, replicating major indices which consist of many individual securities. From an investor’s point of view, this means you can hold fewer of them to get a wide-ranging portfolio. But can you really...

Using ETFs to invest in quality companies

Thursday 19 Sep 2019

You can use exchange-traded funds (ETFs) to access many different types of shares, grouped according to whatever criteria you like. For example, you can use screening tools to narrow down the ETF universe to those funds which only invest in quality stocks. But what are quality stocks and why would...

Choose wisely with thematic ETFs

Thursday 05 Sep 2019

Many investors like to invest in big themes, seeking exposure to a range of companies which could benefit from something hot in the market or structural growth in a certain industry, geography or demographic. Historically investors have achieved this exposure through putting money into certain unit...

How do I know which ETF to buy when lots track the same thing?

Thursday 29 Aug 2019

When you’re thinking of buying an exchange-traded fund (ETF), the choice can be daunting. There are typically many funds tracking the same indices, making it difficult to know how to choose between them. It’s not as simple as just looking at the cost, although that should certainly be a key...