Exchange traded funds (ETFs) are funds that trade like stocks with the diversification benefits of managed funds. In one trade, they can offer diversified, low-cost, transparent and tax-efficient exposure to companies across the globe.
An ETF is a basket of securities—such as stocks, bonds, currencies or commodities—that can be bought and sold in a single trade on an exchange. They generally track the performance of an index, less fees, and offer targeted exposure to a specific market segment, such as an asset class, geography, sector, or investment theme.
1ETFGI, as of 09/30/2022. All figures in USD.
Authorised Participant (AP)
An entity chosen by an ETF's sponsor to undertake the responsibility of obtaining the underlying assets needed to create an ETF. Authorised participants are typically large institutional organisations, such as market makers.
Creation and Redemption Process
The process whereby an ETF issuer takes in and disburses baskets of assets in exchange for the issuance or removal of new ETF shares.
An order placed with a broker to buy or sell a set number of shares at a specified price or better.
The degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Liquidity is characterised by a high level of trading activity.
The market where shares of an ETF are created or redeemed.
A market where investors purchase or sell securities or assets from or to other investors, rather than from issuing companies themselves. The Australian Securities Exchange is a secondary market.
Passively managed funds hold a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics.
Expiration date: 31/12/2023