magazine archive
magazine archive
Exchange-Traded Funds
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...
One way to avoid volatility with ETFs
Thursday 04 May 2017There are times when markets are hit by bouts of volatility. Panic can set in when share prices move wildly. There’s even an index that shows a 30-day expectation of the phenomenon, the Chicago Board Options Exchange Volatility Index known as the ‘VIX’. There are plenty of ways to try and mitigate...
The key questions on ETFs
Thursday 20 Apr 2017Exchange-traded funds (ETFs) are the most successful passive financial products of recent years but there are some concerns about how these instruments perform and their implications for the rest of the market. One of the recent charges brought against ETFs is that, due to their low cost, investors...
More ways to prosper with ETFs: Part 3 of our fund series
Thursday 16 Feb 2017Investors are pouring in money in the hope that smart beta and factor-based ETFs will outperform ‘vanilla’ ETFs which just track broad stock market indices. They also attracted to smart beta and factor-based ETFs because they can add some extra diversification to an investment portfolio. In last...
Getting clever with ETFs: Part 2 of our fund series
Thursday 09 Feb 2017Product launches in the exchange-traded fund (ETF) space over the past couple of years have been dominated by smart beta ETFs. These types of ETFs aim to be more sophisticated than straight index tracking vehicles. Smart beta ETFs fall somewhere between passive and active funds. Instead of...
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