ETFs: EXPONENTIAL GROWTH
ETF stands for Exchange Traded Fund. An ETF is a listed fund which can be bought and sold on a stock exchange, just like a share. Since their origin in the 1990’s, ETFs have witness exponential growth. At end Dec 2019, there was over USD 6 trillion invested worldwide, in over 7000 different ETFs.
The first ETF was launched in Canada in 1990. Since then, the low-cost, flexibility and transparency of ETFs has led to enormous growth in the assets invested in these instruments.
ETFs replicate the performance of an underlying index, for example the S&P 500 equity index in the USA. ETFs are available on indices of equities, bonds, commodities and other asset classes. Using ETFs, it is possible to gain exposure to virtually any asset class, country, sector or investment style globally. As of end 2019, there were over 7,000 different ETF available.
What are the advantages of ETFs?
ETFs will replace traditional mutual funds over time. Total asset in Exchange Traded Products (ETPs) have grown from USD 1 billion 17 years ago to USD 6 trillion at the end of December 2019 (source: ETFGI).
Using ETFs, we can construct a low-cost portfolio for you which exactly matches your risk profile. It will be a fully-diversified ETF portfolio, covering the major asset classes, geographic regions and investment styles.