Kanish Chugh - ETF Securities
Broadening investment horizons
What is an ETF?
A fund that is traded on an exchange
Exchange Traded Funds - It's a simple concept that can quickly become confusing. Kanish likes to flip the words around to say that an ETF is a fund traded on an exchange.
Get that? It's a fund that invests in something like the ASX 200 (the top 200 shares on the Australian Stock Exchange). And you can buy and sell that fund as quickly and as easily as buying a single stock. Don't forget to go back and listen to Evan McQuire about the dangers of "single stock shock". ETFs help you to guard against this kind of shock.
An ETF that tracks an index like the ASX 200 or the S&P 500 (the US equivalent) is often referred to as a "market-tracker" or an "index-hugger".
The other key concept that we discuss is that ETFs are "open-ended". What does this mean? Whatever an ETF is holding increases or decreases with the amount of money invested in that ETF.
Kanish gives a very clear explanation of this. The GOLD ETF is backed with actual gold bullion. When more investors buy the ETF then more bullion is bought and placed in the vault in London.
ETF Securities is an independent provider of accessible, specialist investments. They provide Australian investors with low cost access to a range of themes that aren't available here. We talk about some of these that include:
- International shares
- Palladium
- Robotics
- Artificial Intelligence
- Emerging markets like India
And finally we talk about Kanish's aggressively invested 2 year old son! Here's a couple of videos related to Kanish's interview.
The da Vinci robotic surgical system in action
Kris Walesby from ETF Securities talking about the future trends for investors to consider
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Shares for Beginners is for information and educational purposes only. It isn’t financial advice, and you shouldn’t buy or sell any investments based on what you’ve heard here. Any opinion or commentary is the view of the speaker only not Shares for Beginners. This podcast doesn’t replace professional advice regarding your personal financial needs, circumstances or current situation.