What are ETFs

So, what exactly are ETFs?

An Exchange Traded Fund (ETF) is a combination of the best features of conventional mutual funds and individual stocks.

Generally speaking, an ETF represents a portfolio of securities (such as stocks, bonds or alternative assets), which aims to track the performance of a specific market index (like the FTSE 100). An ETF is bought and sold on a stock exchange, like a share.

Buying a single ETF gives you exposure to a specific market. Alternatively, you can buy a range of ETFs over several markets in order to implement a more sophisticated investment strategy.

In short, ETFs represent building blocks which can help you create the investment portfolio you want.

Whether you are looking to invest in European equities or bonds, or more exotic choices like emerging markets, clean energy or commodities, there is an iShares ETF suitable for your needs.