What are the benefits in investing into ETFs?
The benefits of investing into ETF's include:
Simple – bought and sold just like stocks, they are highly liquid and easy to trade.
Transparent – the components of the ETF are fully visible to you the investor.
Flexible - trade in global markets and assets that are normally difficult to access.
Diversification – access a whole country index through a single share.
Low cost –as ETFs trade like stocks, standard commission rates apply (from £6.95 - £12.95 per online trade). There is no Initial Service Charge (ISC) and low Annual Management Charges (AMC) normally apply (see the ETF factsheet for further information).
No stamp duty - tax treatment depends on your individual circumstances.
You can read more on the risks of ETFs.