What is an Exchange Traded Fund (ETF)?
Under the CPF Investment Scheme, you can invest in Exchange Traded Funds (ETFs).
 
An ETF is an investment fund that is listed and traded on an Exchange. It is designed to track an index of markets and sectors or a fixed basket of stocks. It is bought and sold in the same way stocks are bought and sold on the Exchange.
 
Investors can track the ETF's performance by monitoring the particular underlying index's performance.
 
What are the benefits of an ETF?

Exchange Traded Funds (ETFs) offer investors the benefit of diversification as investors need only to buy an ETF share to gain exposure to a diversified portfolio of domestic or international stocks. ETFs have low annual management fees and investors may buy or sell ETFs at prevailing market prices during trading hours in the Exchange. Investors are also able to see what stocks they are buying as ETFs offer transparency in its composition.

 

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