An Exchange Traded Fund (EFT) is an investment fund traded on stock exchanges much like stocks. EFTs enable investors gain exposure to well-known equity indices or sectors in one trade as easily as buying any ordinary share. They have become a phenomenal global success and continue to soar in popularity as one of the fastest growing investment products of recent times. The increase in popularity and in invested assets can be attributed to their low cost, accessibility, flexibility, diversity, transparency and liquidity; all features that investors typically see as key in a desirable investment vehicle.

EFTs are an easy and cost effective way for investors to achieve returns from indices such as the FTSE or S & P 500 without having to purchase the individual stocks. EFT shares can be bought and sold on the stock market in the same way as any other share. Investors therefore immediately benefit from the best of both stock and investment fund characteristics with instant market access at competitive cost levels and with substantial daily liquidity.

EFTs are structured as open-ended investment funds and can be traded intra-day on the majority of global stock exchanges. The aim of the EFT is to simply mirror or replicate an index that represents a particular market such as the NASDAQ 100, FTSE 100 or S & P Banks Index. EFT shares can easily be invested in via Adelphi Financial Brokers and purchased in a personal, pension, corporate, charity or ARF capacity. They trade and are settled through the local clearing system in the same way as any other listed tradable security.

In the UK market alone there are over 200 EFTs available, including many markets and sectors that were previously difficult to access. Now, through the simplicity and efficiency of EFTs, investors can access, Major Equity indices, Emerging Markets, Commodities, Currencies, Bonds, Alternative Investments and Leveraged Index EFTs.

Those seeking dividend payments should note that if the underlying instrument being tracked, either shares or bonds, pays a dividend or coupon, then, generally, the EFT will also pay a dividend or coupon.