magazine archive

magazine archive

Exchange-Traded Funds

Using low-cost ETFs to generate an income from the market

Thursday 23 May 2019

Investors 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 2019

Exchange-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 2019

In 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 2018

One 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 2018

Cost-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 2018

Tracker 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 2017

There 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 2017

There 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 2017

Exchange-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...