Exchange-Traded Fund ETF: What It Is and How to Invest

Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be more volatile and less liquid than larger capitalization companies. Explore strategies for sourcing private credit opportunities in evolving markets, focusing on both sponsor and non-sponsor deal flows to drive consistent deal activity. We explore the top questions asked by advisors in May 2025, on topics like international diversification, trade policy, and earnings.

ETFs in the United Kingdom

Designed for investors seeking to chart a different course. Our International Access ETFs deliver targeted exposures to Asia, Europe and Latin America, as well as actively managed strategies focused on high-potential emerging market segments. ETFs are available on most online investing platforms and retirement account provider sites, along with investing apps like Robinhood. Most of these platforms offer commission-free trading, meaning that investors don’t have to pay fees to the platform providers to buy or sell ETFs. This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients.

How ETFs Work

Paris-aligned Global High Yield Fallen Angels corporate bond exposure. Aims to generate long-term outperformance through exposure to themes we believe are transforming society. Fidelity’s thematic ETFs give you access to our vast global research, flexibility, and the ability to easily diversify, aligning with your objectives. The investment seeks to track the investment results of the S&P 500 composed of large-capitalization US equities.

THE BENEFITS OF ACTIVE ETFs

• Passive exposure to investment grade credit curve steepness in the US and Europe.
• Before joining Investopedia, she consulted for a global financial institution on cybersecurity policies and conducted research as a Research Analyst at the Belfer Center for Science and International Affairs.
• As a result, the number of ETF shares is reduced through the process called redemption.
• Dividends are a portion of earnings allocated to investors.

Why now may be the time to consider U.S. small caps over international equities—diversify, hedge dollar risk, and tap into global alpha potential. A short duration bond ETF with enhanced yield and focus on capital preservation. Access pioneering investment solutions developed in direct response to evolving client needs, including CLOs, ESG-focused strategies and tokenised vehicles. Leverage the insights of Janus Henderson’s active investment teams to optimise your portfolio. Benefit from over a decade of ETF expertise and established capital markets relationships.

Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. Talk to a financial advisor before making an investment decision. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. The U.K. ETF market is one of the largest and most diverse in Europe. ETFs listed on the London Stock Exchange (LSE) offer exposure to various asset classes and markets, including equities, fixed income, commodities, currencies, real estate, and alternative investments.

FBTC is not a traditional ETF registered under the Investment Company Act of 1940. Select from a range of ETFs including active equity, fixed rovenmill income, thematic, sustainable, and more. The distinction of being the first exchange-traded fund is often given to the SPDR S&P 500 ETF (SPY), launched by State Street Global Advisors on Jan. 22, 1993. There were, however, some precursors to SPY, including Index Participation Units listed on the Toronto Stock Exchange (TSX), which tracked the Toronto 35 Index and appeared in 1990.

A mutual fund trades only once a day after the markets close. A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. To view standardized performance, please click on the fund ticker links above. Secondly, we’re developing new strategies at competitive price points. Research shows that when active ETFs are priced similarly to the average passive ETF total expense ratio, flows tend to go towards the active ETFs. We’re trying to offer timeless, high-conviction strategies we have experience in, at a reasonable price.

Learn how investors can diversify portfolios to navigate market uncertainty. Explore the 2025 investing outlook and learn strategies for portfolio diversification to enhance returns and reduce risk amid evolving market trends. An actively managed, concentrated portfolio of large and mid-cap European companies seeking capital appreciation over the long term. From core solutions to high-conviction active strategies, our market-leading ETFs (Exchange-traded funds) deliver Janus Henderson’s differentiated insights via an efficient and liquid vehicle.

For example, a fund may concentrate half of its assets in two or three positions, offering less diversification than other funds with broader asset distribution. An index fund usually refers to a mutual fund that tracks an index. An index ETF is constructed in much the same way and will hold the stocks of an index. However, the difference between an index fund and an ETF is that an ETF tends to be more cost-effective and liquid than an index mutual fund. You can also buy an ETF throughout the trading day, while a mutual fund trades via a broker after the close of each trading day. In the case of a mutual fund, each time an investor sells their shares, they sell it back to the fund and incur a tax liability that must be paid by the shareholders of the fund.