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WEIRD AND
ETFs allow retail investors to access obscure and exotic strategies – but Pádraig Floyd says they may be better off keeping it simple
WONDERFUL
W hile people usually
turn to exchange traded funds ( ETFs ) to keep a lid on costs in their portfolio , these products also offer another important benefit that is often overlooked – providing significant exposure to parts of the market that open-ended funds simply can ’ t access .
Unlocking enormous new areas of the investable universe has become particularly important at a time when returns from the typical equity / bond allocation are expected to be poor for the foreseeable future – and Chris Mellor , executive director of equities product management at Source ETF , says investors who are new to this part of the market may find themselves spoilt for choice .
“ There are ETFs available that offer exposure to markets such as China A shares – companies listed on the mainland China stock markets – sectors such as US biotech , European media or thematic ideas like companies with the greatest exposure to foreign revenues or high yield bonds ,” he said .
10 trustnetdirect . com