magazine archive

magazine archive

Exchange-Traded Funds

Accessing small caps through ETFs

Thursday 13 Aug 2020

Exchange-traded funds (ETFs) are often associated with the largest, most liquid stocks in the market, but in fact you can use them to gain exposure to small companies too. But why would you want to hold them through ETFs, what are the risks, and what are your options when it comes to choosing a...

Removing currency risk on overseas-focused ETFs

Thursday 04 Jun 2020

When looking to invest in a certain region like the US, Japan or the Eurozone, exchange-traded funds (ETFs) can be a very useful tool. They give you a broad and cost efficient exposure to the country’s stock market which helps capture a decent amount of the upside, and also offers the benefit of...

High yield corporate bond ETFs are looking more attractive

Thursday 14 May 2020

In the middle of March when the world suddenly became aware of the economic consequences of the virus pandemic, the high yield or junk bond market almost became dysfunctional, according to Invesco fund manager Rhys Davies. Trading became very difficult as volumes shrank and prices fell (causing...

Socially responsible investing: a stricter form of ESG

Thursday 16 Apr 2020

If you want your money to be invested in a morally correct way, looking at funds with the ‘socially responsible investing’ (SRI) tag may be a way to do it. SRI is an attempt by those in the fund management world to apply a stricter and more focused style of ESG (environmental, social and governance...

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...