ETFs (or exchange traded funds) are a very simple way to invest for the long term. An ETF trades on the stock exchange exactly like any other share – the difference being that instead of only representing one company, an ETF holds all companies which from part of the index that the ETF is tracking.


ETFs are generally bought and sold on a stock exchange, via a broking platform like SatrixNOW. They’re considered growth investments because their value can rise and the owner may therefore be able to make money by selling the ETFs for a higher price than they initially paid for them. An ETF owner may also receive income from dividends, which are effectively a portion of a company’s profit paid out to its shareholders.


It is important to note that ETF prices change from day to day and the value of the ETFs may fall below the price which the investor initially paid for them meaning shares are generally best suited to long term investors, who are comfortable withstanding these ups and downs.