What are Exchange-Traded Funds (ETFs)?

An Exchange-Traded Fund (ETF) is a collection of investments – stocks, bonds, commodities and more, put together to permit traders to trade in a few markets simultaneously. Due to their continuous pricing, ETFs can be bought and sold on a stock market exchange during market hours just like stocks.

ETFs are traded as a basket of related assets. The baskets are usually combined together based on a common characteristic or underlying connection such as industry, theme, geography etc. ETFs also make it possible to invest in certain industry sectors. In this way, traders can gain broad exposure to the overall sector within an industry at a much lower cost in just a single transaction.

ETFs are an increasingly popular investment and a fast-growing innovative market since they offer great portfolio diversification. They can be ideal for traders and investors getting started in the market as you can get diversified exposure to a market, a sector or an asset class with only a small amount of capital. Traders and investors can have a fully diversified stock portfolio with only a small collection of ETFs.

At HFM we offer a range of sector-based ETFs, including mining, energy, technology, health care, real estate and more providing the advantage of diverse, flexible, low-cost ETFs trading.

Benefits of ETFs trading

Trading flexibility

Transparency

Tax efficiency

Portfolio diversification

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