Exchange Traded Funds
An Exchange Traded Fund (ETF) combines the diversification benefits of an open-ended index fund with the trading convenience of a share. ETFs are traded on-exchange and the funds aim to match the performance of a specified market index.
Recently both professional and retail investors have discovered the unique combination of benefits ETFs offer such as liquidity, diversification, transparency, their significant cost advantages and the ability to rapidly implement a comprehensive range of investment strategies.
There are a huge range of indices tracked via ETF's from major global stock markets to agriculture and commodities. ETF's can be used to provide very cost effective exposure to alternatives enhancing portfolio diversification. They can also be used to provide a low cost "Core" investment.