O'Reilly logo

Cotter On Investing: Taking the bull out of the markets: practical advice and tips from an experienced investor by John Cotter

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 10: Exchange Traded Funds (ETFs)

ETFs are open-ended index funds that are traded on stock exchanges. In other words, they are tracker funds that are priced continually on the markets that you can buy and sell immediately like any share.

They are the biggest growth story of the stock market over recent years and for good reason.

Low cost

A great attraction of ETFs is that they are cheap:

  1. Low Total Expense Ratios (TER), which are the annual charges made by the fund; ETF TERs range from a low of 0.15% to a high of 0.85% pa.
  2. There are no front-end fees.
  3. There is no stamp duty charged on purchases.
  4. They offer very small bid/offer spreads.

You could claim, therefore, they offer the best of both worlds: the diversification ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required