What is an exchange-traded fund?

ETFs are mutual funds that are traded on a stock exchange and track a specified index or benchmark, thereby alowing investors to participate in entire financial markets with the ease of share trading.

How do ETFs differ from mutual funds?

While offering the same diversification and investment reach as mutual funds, ETFs differ in several key areas:

• ETFs are priced continuously during market hours
• Transparency – holdings are published daily
• ETFs enable an investor to buy or sell at lower costs than with a mutual fund

How do I invest in an ETF?

You can invest in ETFs directly from the GDI Trader platform. All ETFs tradable through the platform can be bought or sold using the Stock Trading module or the Price List. If you have trouble finding the ETF you want to purchase, use the Instrument Explorer to search by the ETFs name or ticker symbol.

How can I track the performance of the ETF?

You can track the performance of your ETF through the GDI Trader platform. Monitor the price of the ETF through the Price List and use the charting system to identify longer term price trends and review past performance. GDI Trader's Instrument Information module even allows you to read news and background information related to the ETFs you are trading.

How many ETFs can I trade through GDI Trader?

GDI Trader offers over 100 passively-managed ETFs covering a wide range of sectors and markets.

Are ETFs only for stocks?

No. ETFs are available for a variety of indices including fixed income, currencies and commodities.

Are there any limitations on the ETFs in which I can invest?

Exchange Traded Funds (ETFs) are mutual funds, which are generally required to register for marketing and/or trading in the individual jurisdiction in which they are publicly offered. Certain restrictions may apply depending on the jurisdiction in which you live. Please be aware that GDI Markets recommends that you should only invest in an ETF if it is duly registered in your local jurisdiction. Investing in an ETF which is not registered in your local jurisdiction could result in loss of investment or adverse tax implications.

How are ETFs regulated?

ETFs fall under the auspices of the jurisdictions in which they are registered and are subject to the rules and regulations of the exchange on which they are traded.

For specific regulatory information, check with your local financial authority.

What are the benefits of investing in ETFs (in trading ETFs like shares)?

Trading ETFs like shares offers several advantages:

• You can buy or sell at any time, just as you can a stock
• You can use the same dealing techniques that are associated with share trading, such as market, limit and stop orders
• You can track the performance of your ETF through the GDI Trader platform, using the technical analysis and charting tools within the platform to monitor your investment

What fees are associated with trading ETFs?

ETFs are subject to an annual fee, commonly referred to as Management Fee or Expense Ratio. This fee does not include the commission payable on buying or selling the ETF. Details regarding the fee are provided in the prospectus for each individual ETF.

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Please be aware Forex, CFDs and Futures are margin products that carry a high level of risk as you can lose all or more than your initial investment. These products may not be suitable for all investors and you should ensure you fully understand the risks involved, seeking independent advice if necessary.