by: Tam Ging Wien

ETFs are excellent vehicles for investors who want to spend little time monitoring their investments, yet want investment returns aligned with the markets. ETF investing in the long term will outpace inflation and fixed deposits; compounding wealth over the long term.

Introduction to ETFs

Exchange traded funds (ETFs) are investment funds which are listed and traded on a stock exchange. When you buy into an ETF, your contribution is pooled together with other investors and invested according to the ETF’s investment objective. They are similar to unit trusts which is an investment vehicle most people are familiar with. ETFs however differ from unit trusts in that they are traded over an exchange and therefore can be bought and sold quickly throughout the day while the market is open.

ETFs as its name suggest is fund that holds underlying assets such as stocks, commodities, bonds or a …