ETF (Exchange Traded Fund)
A pooled fund that trades on the London Stock Exchange like a share, throughout the day.
ETFs hold a basket (typically tracking an index) and their units are listed on the LSE. You buy and sell through a stockbroker at intra-day prices, not the end-of-day NAV. Popular UK-listed examples include Vanguard FTSE All-World (VWRL), Vanguard S&P 500 (VUSA), and iShares Core MSCI World (SWDA). OCFs are usually lower than equivalent OEIC index funds, but you also pay dealing commission and the bid-ask spread, and the on-screen price can sit at a small premium or discount to NAV. Most major UK ETFs are UCITS-compliant and domiciled in Ireland or Luxembourg.
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