ETF News

ETFs 'one of the cheapest' ways to invest long-term

Exchange traded funds (ETFs) offer one of the cheapest ways for investors to gain exposure to a particular share index or basket of securities at a time when markets are starting to "pick up".

Writing in the Telegraph, Alison Steed said investors looking to build up long-term savings for retirement need to "think carefully" about how they can get the best possible returns, bearing in mind that investments can go down as well as up.

Because ETFs track an entire index or market sector, they are one of the most cost-effective ways to gain exposure to a range of securities, she added.

Fry Group director Graham Barnes told the newspaper that investors need to decide how long they are planning to save for and the level of risk they are prepared to take.

"But with an ETF, you get quick, inexpensive exposure to the markets," he added.

With global assets under management in ETFs reaching a record high of $862 billion (£530.8 billion) at the end of July, it seems more and more investors are looking to add the funds to their portfolios.

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