Adrien SAMUEL-LAJEUNESSE, Product Specialist
An ETF (Exchange Traded Fund) is a listed investment product that aims to track the performance of a specific underlying index, hence the associated term of passive management.
Like traditional funds, ETFs contain assets with similar characteristics (equities, bonds, etc.), allowing investors to buy hundreds or even thousands of assets in a single transaction with reduced management fees compared to an active investment fund.
ETFs offer the choice of investing in a given geographical area (world, emerging...), a specific sector (healthcare...), innovative themes (IA...) or particular management styles (value...)
ETFs are popular with investors and are traded on the stock exchange throughout the day as common stock, making them liquid and easy to buy or sell.
ETFs can be classified into two main categories depending on their replication method.
Physical replication can be used when the index has a limited number of components with good liquidity.
Synthetic replication is particularly relevant for indices that are most sensitive to replicating because of, for example, the number of components or the difficulty of accessing some markets.
Here are a few key points to consider when choosing an ETF:
An ETF trades on stock markets, like a share/ an equity. You can place an order with your broker (banker) as you would for any other share / equity. Our specialists can support you throughout your investment to find the best solution to meet your needs and your specific profile.