Investment in a basket – why you shouldn’t buy individual shares

Exchange Traded Funds (ETFs) are some of the fastest growing investment vehicles in the world, and you’ve probably never heard of them.

Unlike Bonds, which are tradeable blocks of money like an IOU at a fixed interest rate, EFTS are a basket of shares that are variable depending on indexation.

So how exactly does this work, and could it work for you?

Story features:

– David Bassanese, Chief Economist of Betashares

– Dr Adrian Lee, Senior Lecturer in the Finance Discipline at the University of Technology, Sydney

Image: ‘sh14’ foreign by Upupa4me on flickr