Get your hands on a collection of shares that follow market themes, one time!
At a first glance an ETF might look a bit like its distant relative: a unit trust. But unlike its cousin, this sexy little portfolio of different shares, bonds, and other instruments, is single and ready to mingle – it can be traded on stock exchanges (like the JSE) as one instrument. The most common ETFs are designed to track the performance of a market benchmark or index by mirroring the makeup of that index in a portfolio.
ETF is short for exchange-traded fund and is a collection of stocks or other assets. When you buy an ETF, you’re buying all of the stocks that are in the ETF without having to buy each one separately. They usually track an index like the S&P 500 or closer to home, the JSE Top40