Sometimes, slow and steady wins the race. Even if it doesn’t, it sure does help to diversify your portfolio with a medium risk offering. Low risk doesn’t have to mean boring, though! This fund invests indirectly into global exposure to value-growth assets such as shares, bonds, cash, and alternative assets with a lower volatility profile than higher risk options, to help give you peace of mind that your portfolio is better able to weather stormy tides. Remember, all investing carries risk, and even lower risk options can see you losing some of the money you put in.
Remember, your capital is at risk
ETFs are not only a great way to gain exposure to major stock market indices, like the S&P 500 or FTSE All-Share, but also enable you to access more niche markets or specific sectors.
Exchange-traded funds are exempt from the 0.50% stamp duty. Hold your ETFs as part of an ISA or SIPP tax wrapper, and you can access additional tax benefits.
When buying ETFs, you invest in a basket of stocks that will mirror how a specific index performs without buying all the stocks individually.
ETFs are less management fees involved. They also tend to be less costly than purchasing individual shares - fewer transactions, less trading costs.