ETFs are convenient investment vehicle for investors to gain exposure to their investment strategies. They can be used as portfolio construction tools or tactical trading instruments.
ETFs allow investors to reduce their concentration risk by spreading their investment capital across the underlying assets held by the ETFs, and they enable investors to diversify their portfolio at lower transaction costs.
ETFs have democratised investing for investors by providing investors with access to a wide variety of asset classes, market exposures and investment strategies.
- Efficient – lower cost compared to mutual funds
- Transparent – listed on exchanges, intraday price is available
- Flexible – trades like stocks, and comes with portfolio diversification advantage
- Easy access to closed door markets, such as India, China, Middle East, Latin America, etc
- Easy access multiple assets classes, such as commodities, equities, fixed income, private equity, real estates, gold & silver etc
- Dividend payouts for selected ETFs