of assets covered. The market has grown dramatically in recent years and there are now close to 2,000 ETFs worldwide,” Mark Atherton Reports From Times Online.
“However, the schemes are not ideal for every investor and there are many factors to be considered before selecting the right fund for a portfolio. The big attraction is that ETFs offer a cheap way to gain exposure to a wide range of assets, from stock markets to bonds and commodities,” Atherton Reports.
“Barclays, through its ishares operation, and Deutsche Bank, with its db-x trackers, offer all the leading indices, such as the FTSE 100, FTSE all-share and their counterparts in the US, Japan and Europe. They go even farther afield, covering indices in Brazil and China, as well as ones for regions such as Latin America and Asia. The range of assets covered is growing all the time. You could buy anything from a Japanese equity ETF to a soybean oil ETF. There is even one for nuclear energy,” Atherton Reports.
“The schemes operate like a tracker fund, in that they replicate a particular index. However, they are traded like a share, which gives investors greater flexibility when it comes to buying and selling. Those who are bearish about markets can take advantage of ETFs that “go short” on some indices, aiming to make money when an index is falling. This has proved a profitable strategy in recent years as markets around the world have plunged,” Atherton Reports.
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