ETFs are Simple and Safe, but dont Miss Out on the Flash Crash 2010

Published Date : Jan 13, 2014

Albeit, the Exchange-traded funds (ETFs) provide an outstanding range of products in the financial market, the investors may stay cautious regarding the levied risks.

According to the statistics, the global ETF industry has expanded into a $2.4 trillion (£1.45trn) behemoth, including the top four providers (the nearly three-quarters) of the market. 

Now-a-days, investors simply purchase low-cost funds that equal to an equity index, some UK gifts, and corporate bonds in the market, and however, sit back and overlook the regular gyrations that stir in the stock market, in the impression that the investments will win out over a period of time. 

All these strategic aspects and trends of new exchange-traded funds (ETFs) have brought peace and understanding in the financial market. 

Contrary to popular beliefs, the simple and safe financial stock market structures are often quite exposed to the investors in the form of additional risks.  

According to a report from BlackRock, the total amount of investor money entering into the global exchange-traded (ETF) products last year reached a figure of $236bn. The credits are majorly attributed to the equity markets in the developed countries.   

Last year, the investments in the equity (ETFs) reached a record high of $24bn, with the U.S draws about $147bn funds in the process. Meanwhile, Japan attracted approximately $38bn, and Europe (in its second half) reached a figure of $27bn, as recorded last year.