Question 1

What is an ETF?

Accepted Answer

An ETF (Exchange traded fund) is a basket of securities (e.g. stocks) that tracks an underlying index. An index is a portfolio of securities like stocks or bonds designed to represent an asset class, market or market segment.

Question 2

What is an example of an ETF index?

Accepted Answer

The MSCI World index is a global equity index that represents more than 1600 large and mid-cap stocks across all 23 developed markets countries.

Question 3

What are the benefits of an ETF?

Accepted Answer

ETFs offer lower operating costs than traditional funds, flexible trading and greater transparency.

Question 4

How can I buy ETFs?

Accepted Answer

Exchange Traded Funds can be bought and sold through a brokerage firm on a stock exchange. Another option is to register at a Robo-Advisor which invests with ETFs.

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