It is cheap
Eor index-tracking investments are one of the fastest- growing instruments in the world. Their primary attraction is that they cut out the fund manager and therefore they are They are a great way to obtain market- related returns at a low cost.
As with almost all new investments, they may sound like the Holy Grail, but as t heir availabilit y expanded, t he options have become staggering and
Not all exchange-traded funds are created equal. Some are more successful in providing the market return and there are risks involved. In South Africa, the first of these funds were launched at a very opportune time and their past returns look attractive.
Just because a product is cheap does not necessarily mean that it will meet your needs. Your needs may be more complex and will therefore need a more complex strategy, especially once you start drawing from your capital.