Once we have decided that an ETF may be an appropriate way to gain exposure to a market or asset class, we undertake a search of all available ETFs tracking that market and consider which one to select based on the following criteria:
We will always compare the benefits of investing in particular ETFs with other potential ways of gaining similar market exposure, for example via mutual funds or by direct investment.
Yes, many ETFs are incorporated outside of the UK. However, we will ensure that we only make use of ETFs that are compliant for retail investors.
Netwealth does not charge any transaction fees for buying or selling ETFs or any other investments. However, there are some costs associated with investing in ETFs: the ETF manager will charge a fee for managing the fund and there will be some other costs related to administering the fund. The total charges for investing in passive ETFs will vary depending on how easy it is to replicate the underlying market index. They can be as low as 0.07% for indices such as the FTSE 100 but may be as high as 0.75% for assets such as emerging market bonds. These charges will be taken by the ETF manager out of the value of the ETF. Netwealth will always take into consideration the cost of investing in an ETF before purchasing it for your portfolio.