UBS ETF In order to proceed, you must confirm that you are an institutional investor based in Spain.
Exchange traded funds (ETFs) are among the most popular investment instruments and fastest growing investment products in the fund industry. They combine the benefits of stocks and funds whilst offering investors the opportunity to invest inexpensively, flexibly and transparently in entire markets, thus diversifying their portfolio with one single transaction.
What is an exchange traded fund (ETF)?
An exchange traded fund is an investment fund that tracks the performance of its underlying index and can be bought and sold on the stock exchange. Like a traditional fund, an ETF is a mutual fund and thus unaffected by any insolvency of the ETF provider. It allows the benefits of a collective investment fund yet trades like a share. ETF trading can be done on the stock exchange or over the counter at any time of the day. As ETFs are pegged to an underlying index, they are passive investment vehicles that merely replicate the performance of their underlying asset. In other words, when the underlying index increases in value, the value of the ETF increases likewise.
The first ETFs were listed in the US in 1993 and Europe from 1999. Since then, a steadily increasing number of them have become available. Traditionally ETFs are passive index funds but actively managed ETFs have also come into play since their authorisation in 2008 and require a portfolio management strategy.
Exchange traded funds are available in a wide range of underlying asset classes (e.g. stocks, bonds, commodities, real estate). Whether purchasing a single ETF that exposes the investor to a specific market, or a selection of ETFs over multiple markets, exchange traded funds are an excellent way to create a balanced investment portfolio. Both new and experienced investors should look to them for competitive, cost-effective and long-term results.