What are ETFs?
An exchange traded fund is an investment fund that seeks to track a whole index, sector or market. An ETF will hold assets that enable it to track its benchmark market as accurately as possible – for example, a FTSE-tracking ETF might hold shares in all of the FTSE 100’s constituent companies.
You can buy ETFs like normal shares on a stock exchange, but they can provide exposure to a whole group of assets with a single investment. So rather than having to hold positions in many constituent companies to get exposure to the FTSE 100, for example, you could buy an ETF and only have one position to monitor and manage. Many investors consider ETFs to be an ideal core for their portfolio.
Before investing in an ETF, please read its prospectus or Key Investor Information Document (KIID).