ETFs and LICs
Exchange Traded Funds (ETF) and Listed Investment Corporations (LIC) are investment vehicles listed on the local ASX market. They operate like a managed fund, they in turn go and
purchase multiple companies on the ASX stock exchange.
ETFs and LICs trade just like a normal share, meaning that the pricing is transparent and that they can be bought and sold thoughout any trading day. They generally aim to track as
closely as possible the performance of a given index or asset class, and are generally a cheaper method of investing than managed funds (not always).
ETFs are one of the fastest growing categories of investment products in the world. The reason for this is clear – ETFs are simple, liquid, transparent, low cost and flexible
investment products.
Below are Plain Talk Guides produced by Vanguard that you may find interesting, including one on ETFs.
(Click to Open - Source is Vanguard Investments Plain Talk Booklets)
Three popular providers of ETF's in the Australian market is BetaShares, Vanguard Investments, and Blackrock's iShares.
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