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Question

What benefits do ETFs offer investors?

Answer

There are five key benefits to ETF investments

Diversification – like a fund, a single trade brings exposure to hundreds of stocks & sectors
Ease of access – iShares are as easy to buy and sell as stocks and shares and are traded throughout market hours online or by telephone.
Low costs – Unlike funds there is no initial service charge to access the fund, so you will only incur standard Barclays Stockbrokers dealing commission – from £6.95 to £12.95 per online trade. Furthermore, ETFs have low annual management charges, which for iShares are between 0.15% and 0.85%.
No stamp duty – iShares are exempt from Stamp Duty. Other tax treatment will depend on your individual circumstances and may be subject to change in future.
Transparency - iShares aim to reflect the performance of indices, so you know exactly what you are investing in with holdings published daily online (see www.iShares.co.uk)

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