ETF
An ETF (Exchange Traded Fund) is an investment that lets you buy a basket of shares in one simple trade.
Quick reference:
Trades on: ASX, like normal shares. Benefit: Instant diversification. Costs: Low fees (Typically).
Example: ASX200 ETF hold the 200 largest Australian listed companies.
Expanded explanation:
ETFs are popular because they make investing easy. Instead of picking individual companies, you can buy one ETF and instantly own a wide spread of businesses. Some ETFs follow an index, like the AWSX200, while others focus on specific sectors like technology or healthcare.
ETFs trade just like shares, so you can buy and sell them throughout the day. They are often cheaper and more flexible than managed funds, which makes them a beginner friendly way to invest in the market.
Related Links + Articles:
• Index.