If you want to invest across an entire industry sector, or a broader benchmark, an ETF is the most straightforward way to achieve this. It allows you to target your investment to a sector without having to buy shares in each individual company. For example, if you want to buy Australian shares, you could buy the ASX 200 ETF, based on the largest 200 locally listed companies. So you would own part of the ETF, which itself owns stakes in those companies.

General Advice warning:
Pearl Funds Management, an authorised representative AFS Rep No 001254808 of Banyan Securities Pty Ltd AFSL 484139
The information presented by us is general in nature and does not take into account your personal goals and objectives. It does not represent financial product advice. You should always seek independent legal and financial advice before making a decision in relation to a financial product. Read the Product Disclosure Statement (PDS) before making a decision. You should consider your own circumstances, needs and financial objectives before making a decision.

Kirstie Spicer
26 November 2014