The popularity of Exchange Traded Funds has exploded in recent years as investors seek cheaper ways of gaining diversity in broad based equity funds.
The tactical investor has also taken a shine to ETFs. The passive nature of ETFs mean investors gain exposure to a predefined basket of stocks such as the FTSE 100 or US Gold Miners. Holdings are amended to reflect the underlying index only.
The passive nature of ETFs mean that investors are able to benefit from low charges because active managers (who usually underperform the benchmark) are removed from the equation, thus avoiding punitive fees taken by funds such as OEICs and Unit Trusts.
Used widely by hedge funds, retail investors are now able to enjoy rock bottom fees when investing in ETFs.
We have scoured the market to bring you a selection of low cost index ETFs.
iShares Core FTSE 100 UCITS ETF
OCF/TER: 0.07%
Tracked Index: FTSE 100
Vanguard FTSE Emerging Markets UCITS ETF USD
OCF/TER: 0.25%
Tracked Index: FTSE Emerging Markets
Amundi ETF MSCI China EUR
OCF/TER: 0.55%
Tracked Index: MSCI China
ishares Core S&P 500 – B UCITS ETF USD
OCF/TER: 0.07%
Tracked Index: S&P 500
iShares STOXX Europe Small 200 (DE)
OCF/TER: 0.2%
Tracked Index: STOXX Europe Small (small cap European shares)
(OCF= ongoing charges figure, TER= Total Expense Ration)