Implemented Portfolios primarily uses Exchange Traded Funds (ETFs) to build portfolios and target exposures to the asset classes outlined in the Investment Program.
In their simplest form, ETFs are a collection of securities designed to track the performance of a specific index. For example, you can buy shares in an ETF that tracks the performance of the S&P/ASX 50, an index that tracks the largest 50 companies listed on the Australian Stock Exchange, weighted for the size of each company.
ETFs have grown rapidly both internationally and here in Australia as investors have been attracted to their low cost, transparent, tax efficient characteristics, and there are funds that cover all asset classes and markets around the world.
Our Chief Investment Officer, Jon Reilly explains Exchange Traded Funds in the below video –
Date of production: February 2021
We recommend you speak to your financial adviser or seek independent financial advice to determine whether this is suitable for you.