The Australian ETF Guide (excerpt): cheap & easy investment strategies using exchange traded funds (ETFs)

This is a partial sample of the book The Australian ETF Guide: cheap & easy investment strategies using exchange traded funds (ETFs). The sample reviews the many benefits ETFs can offer investors plus 8 key tips in buying and selling ETFs on the share market.

Exchange traded funds (ETFs) are taking the world by storm, and their popularity in Australia is growing strongly. Yet many Australian investors (especially those running self-managed super funds) that might benefit greatly from the simplicity and cost savings they offer still don’t know about them.

ETFs are simply listed indexed funds, enabling you to buy exposure to the overall Australian or international equity market, industry sectors, bonds and even gold – just as you would an ordinary company share.

So why have you not heard about them? ETFs have low management fees and attract no product commissions, and so are not the typical product a financial planner and super fund would recommend.