Exchange Traded Funds or ETFs are listed investment products that track the performance of a group or "basket" of Shares, Bonds or Commodities. These "baskets" are known as indices. An example of an index is the FTSE/JSE Top 40 Index. An ETF can be bought or sold in the same way as an Ordinary Share. Investors save time and money as ETFs enable an investor to invest in a variety of asset classes through a single listed investment product.
ETFs are used by both professional and private investors wishing to gain exposure to different sectors, asset classes, types of Shares, Commodities or Government Bonds. They are the ideal investment vehicle for those who are new to the world of investing.