Fortunately, it is a relatively straightforward exercise for investors in index-tracking Exchange Traded Funds (ETFs) to follow one of the fundamental rules of sound investment practice: Never invest in a product you don’t understand. An index ETF is designed to replicate the returns of a specific equity or bond index before fees. In short, investors can choose their level of exposure to an index they understand. Apart from being easy to trade, index ETFs are typically low-cost, transparent and, given their usually low-turnover, tax-efficient products. And the fact that they are based on broad indices means these ETFs are a […]