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ETFs can be used in a Stocks & Shares ISA
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Last update : November 2011
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| Yes. ETF stands for Exchange Traded Fund. These are funds traded on the stockmarkets but which can be bought and sold like shares.
ETFs are available for all the main UK indexes like the FTSE 100 and FTSE 250 as well as many foreign stockmarkets and bonds such as Gilts and UK corporate.
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| The main selling point of an ETF is running costs. Whereas most Unit Trusts and other funds charge an absurd initial charge of around 5% (invest £1,000 and only £950 is actually put into the fund, the fund manager takes 5%) and levy annual management fees of 1.5% - 2.5% - ETFs make no initial charge and levy annual fees of 0.15% - 0.75%.
It is no surprise that ETFs volumes have been exploding over the last few years at the expense of Unit Trusts and other similar funds.
See also
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FREE Stocks & Shares ISA Report
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Why you must think long term with ISAs
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Costs and charges - How to slash them
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The best broker to use - and why |
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How to build a Portfolio of different asset classes
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More details |
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