Australia Chinese Simplified

Markets in motion?

Don’t get left behind. Know the moment a market moves significantly, by setting our unique price change alerts.

Create a live or demo account to set alerts in the platform. Find them in the ‘alert’ tab of a market’s deal ticket.

Open demo account Create account
Volatility
Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in Australian shares the smart way. Discover ThinkTrader today.

Open Shares Account
Trading
 
Trading

Trade up today - join thousands of traders who choose a mobile-first broker.

Create a live account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your investing knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

Partner Portal
About ThinkMarkets
 
Liverpool FC Sponsorship

ThinkMarkets is the Official Global Trading Partner of Liverpool FC

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Negative Balance Protection

Trade with peace of mind. Never lose more than what you deposited, no matter what the market conditions.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
ThinkMarkets News

Keep up to date with our latest company news and announcements.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log In Create a live account Try a demo account
Create account

Exchange-Traded Funds

(ETFs)



Invest in ETF’s  
 

Understanding Exchange-Traded Funds (ETFs)

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.

What are ETFs

An Exchange Traded Fund (ETF) is a type of fund that is listed and traded on the stock exchange. The underlying assets within an ETF can range from ordinary shares, bonds, commodities to futures.

ETFs mainly aim to track the underlying asset and not outperform it. As such they provide a great opportunity to diversify your portfolio and gain wide access to sectors and markets.

How do ETFs work

ETFs are funds that are divided into shares and traded on an exchange just like ordinary shares. Their pricing is also updated throughout the day.

The assets within an ETF are usually related, such as Equity ETFs, Bond ETFs and Currency ETFs. An example would be one of the many ETFs that track the ASX 200 index. This means the ETF will hold the companies that make up the ASX 200 index. This fund will aim to closely track the performance of this Index.

Types of ETFs

There are limitless types of ETFs available. The main types include:

Broad-market ETFs
These are the most popular ETFs. They aim to track a broad index such as ASX  200 or FTSE 100.

Sector ETFs
They allow access to industry sectors, such as the financial sector, health care, technology and energy sectors.

Dividend ETFs
Dividend ETFs invest in dividend yielding stocks. There are different strategies and they are outlined by the fund provider.

Benefits of ETFs

Diversification
ETFs allow access to a broad range of securities. ETFs can help you diversify your investment across multiple assets.
 
Access to other markets
ETFs allow access to markets not easily accessible, such as overseas indices and other market sectors.
 
Liquidity
ETFs are trading on the exchange the same way as a normal stock. This allows great liquidity compared to other types of funds.
 
Transparency
ETF managers are under ASIC obligation to regularly disclose to the market what the underlying assets are.
 

Disadvantages of ETFs

Ownership control
No direct ownership of ETFs' underlying asset
 
Currency Risk
If the ETFs' underlying assets are international assets, there may be a currency risk, if the ETF is not currency hedged.
 
Tracking Errors
An ETF aims to closely track the underlying assets. Due to factors such as illiquidity and management fees there may be tracking errors.

Discover what makes Exchange Traded Funds (ETFs) a popular investment class


Download your pdf today

Need help?

If you need assistance to start investing or have any questions, we are here to help.




Contact Us
Australia 1300 390 515
Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (Product Disclosure Statement, Target Market Determination, and Financial Services Guide) before you decide whether or not to acquire any of our products.
When trading or investing in shares and ETFs, the value of such shares and ETFs can fall and rise, which means you could receive less than you originally paid. Please consider the risks involved before you trade or invest. Past performance is not a guarantee of future results.
TF Global Markets (Aust) Pty Ltd is the holder of Australian Financial Services Licence (AFSL) number 424700. Registered address: Level 18, 357 Collins Street, Melbourne, VIC, Australia 3000. ABN: 69158361561.
TF Global Markets Equities (Aust) Pty Limited is a Corporate Authorised Representative (No. 1280662 of Sanlam Private Wealth (AFS License No. 337927). Registered address: Level 18, 357 Collins Street, Melbourne, VIC, Australia 3000. ABN: 63636447099.
This AFSL authorises us to provide our services to people or businesses that are located in Australia.
The information on this site is not directed to residents of the United States, Canada, Japan and Russia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
© 2022 This website is owned and operated by ThinkMarkets Group.
Back to top