If you’re new to investing, Exchange Traded Funds (ETFs) are the perfect way to gain exposure to numerous stocks, at lower prices. ETFs come in various shapes and sizes and are one of the fastest growing investment products in the world. ETFs suit a large variety of investment profiles, whether that be low or high risk, high yield or growth focused, diversified or single asset investments.
ETFs trade through the market just like standard shares on the ASX yet offer the ability to purchase a basket of shares in one single transaction. This offers the added advantage of diversity within a sector, through exposure to different companies. Many ETFs even offer products that simply track the broader share indices around the world. In times of uncertainty in international markets, diversity in stocks is critical to successful investing.
As ETFs can hold numerous stocks in one singular fund, the risks can be somewhat limited. If an ETF was to hold Financial, Industrial, Retail and Telecommunication stocks, the chances of all four of those sectors declining is much lower than a singular stock in a singular sector.
The current ETF of choice at iInvest Securities is the Vanguard Australian Shares High Yield ETF (VHY). VHY is a collection of the highest yielding stocks on the Australian Stock Exchange and pays these dividends out on a quarterly basis. The fund tracks the broader market quite closely and is offering a 6% yield at current levels. To discuss your financial future in the stock market call us on (07) 5520 8788.
Dylan Stoner, Equities & Derivatives Adviser, ADA2 (ASX)
iInvest Securities, Stockbroking & Wealth Management
iInvest Securities Pty Ltd (ABN 44 246 838 283) (“iInvest”) does not guarantee or take responsibility for the accuracy, completeness, estimates or appropriateness of any information or statement of opinion (any of which may change without notice) set out in this communication.
This communication has been provided to you for your general information and does not take into account your objectives, financial situation and needs and must not be relied upon by you as personal financial product advice that has been provided to you by iInvest. If you require advice regarding any aspect of the information and statements of opinion set out in this communication, particularly as to whether you should base an investment decision upon the information or statements of opinion set out in this communication, please contact your financial adviser.