{"id":766,"date":"2021-07-14T10:37:44","date_gmt":"2021-07-14T10:37:44","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=766"},"modified":"2026-03-18T11:46:45","modified_gmt":"2026-03-18T11:46:45","slug":"background-exchange-traded-funds-etfs","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2021\/07\/14\/background-exchange-traded-funds-etfs\/","title":{"rendered":"Background: Exchange-traded funds (ETFs)"},"content":{"rendered":"<p style=\"font-weight: 400;\"><strong><u>Exchange-traded funds (ETFs)<\/u><\/strong>\u00a0are passively managed investment funds that track the performance of a basket of pre-determined assets. It can be the SA Top 40, S&amp;P 500, Nasdaq 100 Resources, Gold etc.<\/p>\n<p style=\"font-weight: 400;\">They are traded the same way as shares and the main difference is that whereas one share gives exposure to one company, an ETF gives exposure to numerous companies in a single transaction.<\/p>\n<p style=\"font-weight: 400;\">ETFs can be traded through your broker in the same way as shares, or purchased in smaller fractions via a monthly or lump sum investment on many of the platforms Innov8ions are contracted to. In addition, many ETF also qualify for the tax-free savings account, where both capital and income gains accumulate tax free.<\/p>\n<p style=\"font-weight: 400;\">Benefits of ETFs<\/p>\n<ul style=\"font-weight: 400;\">\n<li>Gain instant exposure to various underlying shares or bonds in one transaction<\/li>\n<li>They diversify risk because a single ETF holds various shares<\/li>\n<li>They are cost-effective<\/li>\n<li>They are liquid \u2013 it is usually easy to find a buyer or seller and they trade just like shares<\/li>\n<li>High transparency through daily published index constituents<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Exchange-traded funds (ETFs)\u00a0are passively managed investment funds that track the performance of a basket of pre-determined assets. It can be the SA Top 40, S&amp;P&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-766","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=766"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/766\/revisions"}],"predecessor-version":[{"id":767,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/766\/revisions\/767"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}