The Use Of Exchange Traded Funds

Except in certain circumstances, iFunds does not believe that individual equities are appropriate for the majority of investment clients. Therefore, we do not carry out research in to individual companies. We believe that, where possible, buying baskets of shares, particularly in the form of Exchange Traded Funds (ETFs), is a more efficient and lower risk method of investing in equities. By not holding individual companies we significantly reduce the stock specific risk within a client’s portfolio. In addition, the lack of initial charge and low annual management fees attached to ETFs means more of the market return can be given to clients.

ETFs also allow our managers access to other important asset classes such as bonds, property and commodities, which are vital components in the majority of client portfolios.