INVPR036 ETFs - an alternative to shares (420 words)

ETFs have continued to gain huge popularity with investors mainly due to their low-cost flexibility. This longer article explains the differences between physical and synthetic ETFs and outlines the upsides and the downsides to ETF investment.

Exchange Traded Fund investments are gaining popularity but do we really understand them? While they can be low-cost and relatively simple, there are a few other things you should know before hopping on board.

According to research undertaken by Morningstar, Australian investment in Exchange Traded Funds (ETFs) grew by 30.4% in the twelve months ending December 2020 to reach a capitalisation of $79.3 billion (US $60.8 billion).

What do these investors know that you don’t?