A collection of shares, in one go
An ETF is a ready-made portfolio of shares, bonds or other assets that trades on the stock exchange as a single investment.
What is an ETF, exactly?
ETF is short for exchange traded fund. When you buy one, you're buying everything in it, without buying each share separately.
At first glance an ETF looks a bit like its relative, the unit trust. The difference is that an ETF is listed on a stock exchange, like the JSE, so you buy and sell it during the day like a share. Most ETFs track an index, such as the S&P 500 or, closer to home, the JSE Top 40, by holding the same things the index does.
The upside of ETFs
One transaction, many shares
Buy a slice of a whole market or theme in a single trade.
Pocket-friendly
Index-tracking ETFs usually have low costs, and on EasyEquities there's no minimum.
Easy to buy and sell
They trade on the exchange whenever it's open.
Your risk is spread
One ETF holds many investments, so you're not relying on a single company.
International shares
Own global markets from a rand account, without opening an offshore one.
Clear information
ETFs publish what they hold and what they cost, so you know what you own.
Keep learning
Look up the terms you'll see on ETF pages in the glossary, and read ETF news and ideas on the EasyEquities blog.
