What are Exchange Traded Funds
(ETFs)?
Exchange Traded Funds (ETFs) are mutual funds, which are generally
required to register for marketing and/or trading in the individual
jurisdiction in which they are publicly offered. Other conditions may
apply depending on the jurisdiction in which you live. TFG Ltd.
recommends that you should only invest in an ETF if it is duly
registered in your local jurisdiction as indicated on this website. Your
order for purchase of an ETF is deemed as your acknowledgement and
confirmation hereof. TFG Ltd. shall have no liability for any losses
whatsoever, including but not limited to any averse tax implications,
you might incur as a result of investing in any ETF not duly registered
in your local jurisdiction
Fees
The
following fees apply to investments in passively
managed ETFs:
Bid/Ask spread - Fund units are bought and sold on a spread between the
Bid and Ask price as the market dictates.
Management Fee - An annual management fee is charged for each fund, as
described in the data sheet for the fund.
Depository fee - Neither TFG Ltd or Saxo Bank charge an annual
depository fee for ETFs! NO FEES!
Ever wanted to diversify but lacked the means
to manage your risk optimally?
Exchange Traded Funds (ETFs) offer a way to invest in many stocks by taking
one position. Like mutual funds, you get a stake in many different stocks,
but you can do so at any time, on real-time prices that allow you to
constantly monitor the fund's development
Why
to invest in ETFs:
-
A simple way to manage risk by diversifying your portfolio across industry sectors, regions etc. Index-tracking ETFs are
particularly cost-effective.
-
Reap the benefit of constructing your own long-term
portfolio while using 60% collateralization to take shorter-term
positions in the markets you usually engage in.
-
Trade ETFs whenever you want to, on real-time prices.
-
Cheaper than mutual funds and Futures: Lower expense ratios than mutual
funds, less pricey than Futures while allowing you to trade the same
commodities, sectors etc.
How
to trade?
ETFs are
traded like stocks using the Stock Trade module - from the top menu simply
click on Trading > Stocks > Stock Trade. Click Search and type 'DWS' or 'iShares'
for an overview of all the ETFs.
*Disclaimer:
Exchange Traded Funds (ETFs) are mutual funds, which are
generally required to register for marketing and/or trading
in the individual jurisdiction in which they are publicly
offered. Other conditions may apply depending on the
jurisdiction in which you live. Please be aware that TFG
recommends that you should only invest in an ETF if it is
duly registered in your local jurisdiction as indicated on
this website. Your order for purchase of an ETF is deemed as
your acknowledgement and confirmation hereof. TFG shall have
no liability for any losses whatsoever, including but not
limited to any averse tax implications, you might incur as a
result of investing in any ETF not duly registered in your
local jurisdiction |
|
Index ETFs: Passively managed ETFs that attempt to
out-perform specified markets, indices etc.
A
wide selection of both types offer you an easy way to act on the indications
of your research or your advisor. For example, if you are bullish on oil,
buy iShares S&P Global Energy Sector Index.
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