Knowledge centre | ETFs explained

Exchange Traded Funds at Moneycorp Markets

Exchange Traded Funds (ETFs) are mutual investment funds that are traded on a stock exchange.
Most ETFs available today are Index-tracking, investing in a specific portfolio of securities following:

Stock or bond indices
Single or multiple commodities
Industry sector or geographical regions
Hybrid ultra-long and ultra-short funds

ETFs offer a broad and diversified exposure to an array of securities making them ideal for diversifying your investment portfolio. The use of ETFs can allow investors to gain exposure to emerging markets such as India, China and Brazil without buying individual stocks. The huge range of ETFs available allows the informed investor to undertake truly global strategies that are not limited to asset class or liquidity.

Fees

The following fees apply to investments in passively managed ETFs:

Bid/Ask spread

Fund units are bought and sold on a spread between the Bid and Ask price as the market dictates.

Management Fee
An annual management fee is charged for each fund by the fund manager. This tends to be larger for actively managed funds vs. those that track an index.

Depository fee
For holding funds in an ETF Moneycorp Markets will not charge an annual depository fee only a commission as enter and exit the position.