An increasing number of investors are using Exchange Traded Funds (ETFs) to achieve a diversified overseas portfolio. ETFs track the performance of recognised stock indices.
Costs are much lower than managed funds. For example, the Spider, an ETF offering access to America's top 500 companies, carries an expense ratio of just 0.13 per cent, plus trading commissions. The China 25 ETF costs 0.74 per cent, a more typical ETF charge.
ETFs are bought and sold like a normal share,...
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