HOW TO CHOOSE AN ETF
Choosing an ETF depends very much on what you want investment exposure to. ETFs range from the broadest index trackers, locally and internationally, to specific indices. For investors wanting to buy into commodities, there are ETFs covering everything from gold to palladium, platinum, copper, silver, oil and wheat. There are ETF options for investment in money markets, bonds and property. As with equities, an investment decision requires some understanding of the risks and historical returns of each of these investments.
The best option for investors with little understanding of these risks is a broader index like the Top40 in SA or any of the big global indices like the S&P 500 or MSCI indices. Many investors opt for broad trackers and there is growing interest in offshore ETFs, which track indices in the US, Europe and Asia.