Because they are passively managed and are considered benchmarks. These types of fund outperform more than two thirds of active fund managers in the long-term.
ETFs are listed on the stock exchanges such as London Stock Exchange and they trade like a stock during the market hours; however, the prices of non-listed index funds are fixed once per day after the close of the stock market.
No, but they will be very close, for there are few imbedded costs in the purchase and sale of the stocks of the benchmark and other administrative fees. In addition, the shareholders of these funds are paid a cash dividend.
No, to be in the benchmark, the company has to meet certain requirements, such as capitalization, or minimum price among other things, and can be dropped and replaced by another.
You can invest in the same securities through your investment advisor, or directly with your stockbroker, or via an investment platform (fund supermarket).
It depends, you may invest a lump sum, or certain amounts periodically, such as monthly. This may depend on the minimum investment amount required by your stockbroker or investment platform.
Typically, once per year, though AAA will publish on its website a rebalance announcement with comments on performance. The portfolio weighting of 14.2% for each financial position spread across seven different securities (ETFs or index funds)will remain the same.
No, AAA does not accept any money, for it is not a financial institution.
No, AAA is a neutral party with no affiliations with any financial institutions.
There is a risk in investing, as the prices of securities fluctuate and the returns may be such that the value of an investment may fall below its initial value. You should speak with an authorized investment advisor if you are not sure about the suitability of this type of investment style. We give neither financial, nor tax advice. Therefore, seek independent advice if you are uncertain.
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