Investors still confused about ETFs
ETFs remain unknown to investors
Over a third of UK investors still do not know what an Exchange Traded Fund (ETF) is, according to Barclays Stockbrokers.
Demand for ETFs by UK investors has risen steadily in recent years, yet 35 per cent of investors still do not know what they are and a further five per cent are confused by them, mistakenly believing they are a type of cash deposit or commodity.
The poll also reveals that only 16 per cent think the products are great for diversified exposure, and 15 per cent think they are cost-effective instruments. Yet, despite this, over a third do not think ETFs are suitable for them.
Barbara-Ann King, head of proposition at Barclays Stockbrokers, says, ‘Given the rise in global demand for ETFs since their launch seven years ago, it is evident that some investors in the retail space remain confused as to what they are. However, recent trends have shown that this investment vehicle is increasing its visibility in the world of retail and offers instant benefits to investors.’
iShares, the ETF arm of Barclays Stockbrokers, for example, are relatively low cost and offer the combination of the portfolio diversification of a fund and the liquidity of a share.
King adds, ‘For this reason, they are ideal for self-directed investors looking to enjoy flexibility and control, and tap into markets and strategies that are harder to access through single stock selection. iShares are simple and transparent which will appeal to investors wanting to take advantage of new and well-priced markets given the current market conditions.’
Advertisement
Latest news
FSA, OFT and FOS join forces for consumers 11 March 2010
The Financial Services Authority (FSA), Office of Fair Trading (OFT) and Financial Ombudsman Service (FOS) are forming a consumer protection committee.
- High Court confirms liquidation of Cru Investment 10 March 2010
- UK fiscal situation is most at risk 9 March 2010
- F&C in talks to buy Euro fund firm 9 March 2010
Recommendations
Top Ten Life Funds
| Fund | Offer | 1y | 3y | 5y |
|---|---|---|---|---|
| Skandia Finland FIM Russia | 10.76 | 203.6 | -12.9 | 77.2 |
| UBS Life Structured Credit A | 88.79 | 191.5 | n/a | n/a |
| Skandia Finland Alfred Berg Ryssland | 0.81 | 154.8 | n/a | n/a |
| Skandia Finland JPM New European | 1.88 | 153.0 | -17.7 | n/a |
| Skandia JPM New Europe | 238.30 | 146.1 | 6.9 | 92.5 |
| AXA JPM New Europe | 181.20 | 143.2 | n/a | n/a |
| Zurich Sterling JPM New Europe | 242.10 | 141.7 | n/a | n/a |
| Skandia Finland Baring Eastern Europe | 9.67 | 140.6 | -22.4 | 54.2 |
| Skandia Norway Alfred Berg Ryssland | 0.81 | 134.6 | n/a | n/a |
| L&G Neptune Russia & Greater Russia | 127.86 | 129.3 | 10.8 | n/a |
Alternative investments in depth
Skandia trumpets absolute return launch 22 January 2010
Skandia has added the CF Octopus Partner fund to its Skandia Investment Solutions and Royal Skandia online platforms.
- Investing in Vietnam 2 December 2009
- Prising profit from property 11 November 2009
- Will the US lead us into a global recovery? 16 October 2009
Guides
Investing in forestry 3 November 2009
Investing in a forest may seem a rather exotic choice for your portfolio,but there are substantial profits to be made. Jenny Lowe reports.
- Invest using CFDs and Spreadbetting 12 October 2009
- Your guide to investing in commodities
4 August 2009 - Top 10 reasons to invest in emerging market equities 7 July 2009
Special Offers
- Annual report service
Free access to annual reports and other information
on selected companies


