🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 118 (from laksa062)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa118.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.sharesies.nz/learn/etf-exchange-traded-funds-explained\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.sharesies.nz/learn/etf-exchange-traded-funds-explained\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.sharesies.nz\/learn\/etf-exchange-traded-funds-explained","crawl_time":1777047803,"first_indexed_time":1663128218,"http_code":200,"src_unparsed":"nz,sharesies!www,\/learn\/etf-exchange-traded-funds-explained s443","src_root_hash":"18411896536811451318","history_drop_reason":null,"meta_title":"What's an exchange-traded fund (ETF)?—Sharesies New Zealand","meta_descriptions":["Exchange-traded funds (ETFs) are like the investing world’s bundle deal, so should you consider adding them to your Portfolio?"],"attrs_boilerpipe_text":"What’s an ETF?\nImagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties.\nExchange-traded funds (ETFs)\nare like the fruit basket of the share market. \nF = fund\nWhen you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a\nfund\n). ‘Units’ represent your ownership of a slice of this overall fund.\nSo while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments.\nET = exchange-traded\nUnlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange).\nWhy invest in an ETF?\nDiversification\nETFs give you a way to\ndiversify your investments\n(spread your money across lots of different things).\nInvesting in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value. \nOf course, you could do this by buying lots of individual investments—but ETFs let you do this in one go.\nTransparency\nBecause ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively. \nLiquidity\nAs well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more\nliquid\ninvestment than managed funds. \nDepending on your\ninvestment horizon\n, this may or may not be relevant—but it can help if you might need the money sooner!\nIndex versus active\nThe investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs.\nIndex ETFs\nIndex ETFs try to match (or ‘track’) the performance of an\nindex\n, by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy. \nThis passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index. \nKeep in mind, though, that\nnot all index ETFs are the same\n, even if they’re tracking the same thing! \nActive ETFs  \nWith active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included.\nActive ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research).\nWhat ETFs can I invest in?\nAcross those fund management styles, there are thousands of ETFs you can invest in, including:\nBroad market index ETFs\nA broad market index ETF tracks an index across an exchange, like the NZX 50 or S&P 500—attempting to mirror the performance of the share market as a whole. \nThematic\nThematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria. \nESG\nA subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies.\nSome are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard. \nETFs and you\nNow that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your\ndue diligence\nand check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on:\nwhat index, sector, or asset the ETF return aims to replicate\nthe fees and costs\nthe risks of investing in the ETF\nhow to complain if you have a problem with the ETF.\nYou can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF.\nOk, now for the legal bit\nInvesting involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a\nTarget Market Determination and IDPS Guide\nfor Sharesies Australian customers—can be found on our relevant NZ or Australian website.","attrs_markdown":"[Skip to main content](https:\/\/www.sharesies.nz\/learn\/etf-exchange-traded-funds-explained#main)\n\n[Personal](https:\/\/www.sharesies.nz\/)[Business](https:\/\/www.sharesies.nz\/business)\n\n- [Home](https:\/\/www.sharesies.nz\/)\n- Invest\n  \n  - [Overview](https:\/\/www.sharesies.nz\/investments)\n  - [Advised portfolios](https:\/\/www.sharesies.nz\/advised-portfolios)\n  - [Auto-invest](https:\/\/www.sharesies.nz\/auto-invest)\n  - [Agribusiness](https:\/\/www.sharesies.nz\/farmers)\n  - [Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n  - [Kids Accounts](https:\/\/www.sharesies.nz\/kids-accounts)\n- KiwiSaver\n  \n  - [Overview](https:\/\/www.sharesies.nz\/kiwisaver)\n  - [Base funds](https:\/\/www.sharesies.nz\/kiwisaver\/base-funds)\n  - [Self-select](https:\/\/www.sharesies.nz\/kiwisaver\/self-select)\n  - [Make a plan](https:\/\/www.sharesies.nz\/kiwisaver\/make-a-plan)\n  - [The Payoff](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)\n  - [Documents](https:\/\/www.sharesies.nz\/kiwisaver\/documents)\n  - [Fees](https:\/\/www.sharesies.nz\/pricing?tab=kiwisaver&scroll=kiwisaver)\n  - [Performance](https:\/\/www.sharesies.nz\/kiwisaver\/performance)\n  - [Articles](https:\/\/www.sharesies.nz\/learn\/kiwisaver)\n- [Crypto](https:\/\/www.sharesies.nz\/crypto)\n- [Spend](https:\/\/www.sharesies.nz\/spend)\n- [Save](https:\/\/www.sharesies.nz\/save)\n- Protect\n  \n  - [Car insurance](https:\/\/www.sharesies.nz\/protect\/car-insurance)\n  - [Pet insurance](https:\/\/www.sharesies.nz\/protect\/pet-insurance)\n  - [Wills](https:\/\/www.sharesies.nz\/protect\/wills)\n- Learn\n  \n  - [Overview](https:\/\/www.sharesies.nz\/learn)\n  - [Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n  - [Bank Of Kid](https:\/\/www.sharesies.nz\/nz-bank-of-kid)\n  - [Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n  - [Shared Lunch](https:\/\/www.sharesies.nz\/shared-lunch)\n  - [Sharesies Index](https:\/\/www.sharesies.nz\/sharesies-index)\n  - [The KiwiSaver podcast](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)\n\n- [Log in](https:\/\/app.sharesies.com\/login)\n- [Sign up](https:\/\/app.sharesies.com\/sign-up)\n\n- [About](https:\/\/www.sharesies.nz\/about)\n- [Gifts](https:\/\/www.sharesies.nz\/gifts)\n- [Pricing](https:\/\/www.sharesies.nz\/pricing)\n- [Careers](https:\/\/www.sharesies.nz\/careers)\n- [Contact](https:\/\/www.sharesies.nz\/contact)\n- [Help centre](https:\/\/intercom.help\/sharesies\/en\/)\n\n[Personal](https:\/\/www.sharesies.nz\/)[Business](https:\/\/www.sharesies.nz\/business)\n\n- [Log in](https:\/\/app.sharesies.com\/login)\n- [Sign up](https:\/\/app.sharesies.com\/sign-up)\n\n[Log in](https:\/\/app.sharesies.com\/login)\n\n- Invest\n  \n  [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Fks%2Finvest-3d-render.png&w=1920&q=100)InvestLong-term investing on your terms, with access to NZ, US, and Aussie markets.Explore investments](https:\/\/www.sharesies.nz\/investments)\n  \n  [Advised portfoliosGet expert-made portfolios recommended to you to help you reach your wealth-building goals.](https:\/\/www.sharesies.nz\/advised-portfolios)\n  \n  [Auto-investSit back and put your investing on repeat.](https:\/\/www.sharesies.nz\/auto-invest)\n  \n  [AgribusinessBuild a diversified portfolio and create a resilient source of off-farm income.](https:\/\/www.sharesies.nz\/farmers)\n  \n  Explore\n  \n  [Sharesies Funds](https:\/\/www.sharesies.nz\/investments\/sharesies-funds)[Companies](https:\/\/www.sharesies.nz\/investments\/companies)[Exchange-traded funds](https:\/\/www.sharesies.nz\/investments\/exchange-traded-funds)[Managed funds](https:\/\/www.sharesies.nz\/investments\/managed-funds)[Gifts](https:\/\/www.sharesies.nz\/gifts)[Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)[Kids Accounts](https:\/\/www.sharesies.nz\/kids-accounts)\n- KiwiSaver\n  \n  [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2F_next%2Fstatic%2Fmedia%2Fks-overview.f2248068.png&w=1920&q=100)KiwiSaverInvest for your retirement or first home with more choice and control.See overview](https:\/\/www.sharesies.nz\/kiwisaver)\n  \n  [Base fundsChoose from eight base funds, ranging from conservative to high growth.](https:\/\/www.sharesies.nz\/kiwisaver\/base-funds)\n  \n  [Self-selectPick from over 150 companies and ETFs listed on NZ and US exchanges.](https:\/\/www.sharesies.nz\/kiwisaver\/self-select)\n  \n  [Make a planSee what an investment plan as unique as you are could look like.](https:\/\/www.sharesies.nz\/kiwisaver\/make-a-plan)\n  \n  Explore\n  \n  [Fees](https:\/\/www.sharesies.nz\/pricing?tab=kiwisaver&scroll=kiwisaver)[Performance](https:\/\/www.sharesies.nz\/kiwisaver\/performance)[Documents](https:\/\/www.sharesies.nz\/kiwisaver\/documents)[Articles](https:\/\/www.sharesies.nz\/learn\/kiwisaver)[The Payoff podcast](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)[US Markets](https:\/\/www.sharesies.nz\/kiwisaver\/us-markets)[Kids accounts](https:\/\/www.sharesies.nz\/kiwisaver\/kids)\n- [Crypto](https:\/\/www.sharesies.nz\/crypto)\n- [Spend](https:\/\/www.sharesies.nz\/spend)\n- [Save](https:\/\/www.sharesies.nz\/save)\n- Protect\n  \n  - [Car insurance](https:\/\/www.sharesies.nz\/protect\/car-insurance)\n  - [Pet insurance](https:\/\/www.sharesies.nz\/protect\/pet-insurance)\n  - [Wills](https:\/\/www.sharesies.nz\/protect\/wills)\n- [Pricing](https:\/\/www.sharesies.nz\/pricing)\n- Learn\n  \n  [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Foverview-global.png&w=1920&q=100)LearnRead, watch, or listen your way to financial empowerment.](https:\/\/www.sharesies.nz\/learn)\n  \n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Finvesting-basics.png&w=1920&q=100) Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Fbank-of-kid.png&w=1920&q=100) Bank Of Kid](https:\/\/www.sharesies.nz\/nz-bank-of-kid)\n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-journey-sep.jpg&w=1920&q=100) Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Fshared-lunch.png&w=1920&q=100) Shared Lunch](https:\/\/www.sharesies.nz\/shared-lunch)\n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-index.png&w=1920&q=100) Sharesies Index](https:\/\/www.sharesies.nz\/sharesies-index)\n  - [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Fthe-payoff-menu.png&w=1920&q=100) The KiwiSaver podcast](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)\n\n[Learn](https:\/\/www.sharesies.nz\/learn)\n\nSearch\n\n### Browse categories\n- [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Finvesting-basics.png&w=1920&q=100)Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n- [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Fbuild-your-portfolio.jpg&w=1920&q=100)Build your Portfolio](https:\/\/www.sharesies.nz\/learn\/build-your-portfolio)\n- [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Fexplainers.jpg&w=1920&q=100)Explainers](https:\/\/www.sharesies.nz\/learn\/explainers)\n- [![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-journey-sep.jpg&w=1920&q=100)Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n\n- [Learn](https:\/\/www.sharesies.nz\/learn)\n- [Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n- [Build your Portfolio](https:\/\/www.sharesies.nz\/learn\/build-your-portfolio)\n- [Explainers](https:\/\/www.sharesies.nz\/learn\/explainers)\n- [Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n- Search\n\nClose\n\n# What's an exchange-traded fund (ETF)?What's an exchange-traded fund (ETF)?\nExplainers\n\nExchange-traded funds (ETFs) are like the investing world’s bundle deal, so should you consider adding them to your Portfolio?\n\nPublished date,14 September 2022\n\n4 min read\n\n![A wooden bowl of assorted citrus fruits is sitting on a tablecloth on top of a wooden table, in front of a light pink background.](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/7ngSTsBYiHaGaSKWBH7Oea\/98f266f5bcb9803bdcec23cc3c591d5d\/etfs-explained.jpg?auto=format,compress&cs=srgb&w=1920&q=75)\n\nShare\n\n## What’s an ETF?\nImagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties.\n\n[Exchange-traded funds (ETFs)](https:\/\/www.sharesies.nz\/investments\/exchange-traded-funds) are like the fruit basket of the share market.\n\n### **F = fund**\nWhen you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a **fund**). ‘Units’ represent your ownership of a slice of this overall fund.\n\nSo while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments.\n\n### **ET = exchange-traded**\nUnlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange).\n\n## Why invest in an ETF?\n### **Diversification**\nETFs give you a way to [diversify your investments](https:\/\/www.sharesies.nz\/learn\/the-different-dimensions-of-diversification) (spread your money across lots of different things).\n\nInvesting in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value.\n\nOf course, you could do this by buying lots of individual investments—but ETFs let you do this in one go.\n\n### **Transparency**\nBecause ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively.\n\n### **Liquidity**\nAs well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more [liquid](https:\/\/www.sharesies.nz\/learn\/a-deep-dive-into-investment-liquidity) investment than managed funds.\n\nDepending on your [investment horizon](https:\/\/www.sharesies.nz\/learn\/whats-an-investment-horizon), this may or may not be relevant—but it can help if you might need the money sooner\\!\n\n## Index versus active\nThe investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs.\n\n### **Index ETFs**\nIndex ETFs try to match (or ‘track’) the performance of an [index](https:\/\/www.sharesies.nz\/learn\/how-an-index-fund-works), by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy.\n\nThis passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index.\n\nKeep in mind, though, that [not all index ETFs are the same](https:\/\/www.sharesies.nz\/learn\/how-to-compare-funds-tracking-the-same-index), even if they’re tracking the same thing\\!\n\n### **Active ETFs**\nWith active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included.\n\nActive ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research).\n\n## What ETFs can I invest in?\nAcross those fund management styles, there are thousands of ETFs you can invest in, including:\n\n### **Broad market index ETFs**\nA broad market index ETF tracks an index across an exchange, like the NZX 50 or S\\&P 500—attempting to mirror the performance of the share market as a whole.\n\n### **Thematic**\nThematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria.\n\n### **ESG**\nA subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies.\n\nSome are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard.\n\n## ETFs and you\nNow that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your [due diligence](https:\/\/www.sharesies.nz\/learn\/due-diligence-a-fancy-word-for-doing-your-homework) and check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on:\n\n- what index, sector, or asset the ETF return aims to replicate\n- the fees and costs\n- the risks of investing in the ETF\n- how to complain if you have a problem with the ETF.\n\nYou can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF.\n***\n#### Ok, now for the legal bit\nInvesting involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a [Target Market Determination and IDPS Guide](https:\/\/sharesies.com.au\/disclosures) for Sharesies Australian customers—can be found on our relevant NZ or Australian website.\n\n## Join over 1,000,000 investors\n[Sign up](https:\/\/app.sharesies.com\/sign-up)\n\n![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/4jwxGXQ2wXDYoeoivhoaS1\/a0cdd695f323f3f57831932aab361b04\/Join-more-than-X-investors_hand.png?auto=format,compress&cs=srgb&w=1920&q=75)\n\n## More articles\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/3APkZMnv1Ki2zgwnxMsKG4\/4ec661e5a93137bd36bfa3246bebe4af\/article-hero-rebalancing-your-advised-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we rebalance your advised portfolio Learn how we keep the investments in your advised portfolio aligned with your goals over time. Published date,17 April 2026 4 min read Explainers](https:\/\/www.sharesies.nz\/learn\/how-we-rebalance-your-advised-portfolio)\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/rKHNnaLsQtJqg5hZaKB4l\/a17a0eb903f6c990380c633425231df1\/article-hero-how-we-created-our-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we created our advised portfolios When we set out to build advised portfolios, our goal was simple: create diverse, low-fee, tax-efficient portfolios. Here's a look at the thinking behind how we made them. Published date,16 April 2026 9 min read Explainers](https:\/\/www.sharesies.nz\/learn\/how-we-created-our-advised-portfolios)\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/nN4FnDcK51AO2ffasVrb4\/0c7d48d97d2634bb50fe9788697b40af\/SL_1080-1080-post_AFIC.jpg?auto=format,compress&cs=srgb&w=1920&q=75)AFIC's hundred-year long game (Australian Foundation Investment Company) Geoff Driver is General Manager at Australian Foundation Investment Company (AFIC), the century-old ASX mainstay managing \\$10B in assets. Published date,19 March 2026 1 min read Shared Lunch](https:\/\/www.sharesies.nz\/learn\/afics-hundred-year-long-game-australian-foundation-investment-company)\n\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/3APkZMnv1Ki2zgwnxMsKG4\/4ec661e5a93137bd36bfa3246bebe4af\/article-hero-rebalancing-your-advised-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we rebalance your advised portfolio Learn how we keep the investments in your advised portfolio aligned with your goals over time. Published date,17 April 2026 4 min read Explainers](https:\/\/www.sharesies.nz\/learn\/how-we-rebalance-your-advised-portfolio)\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/rKHNnaLsQtJqg5hZaKB4l\/a17a0eb903f6c990380c633425231df1\/article-hero-how-we-created-our-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we created our advised portfolios When we set out to build advised portfolios, our goal was simple: create diverse, low-fee, tax-efficient portfolios. Here's a look at the thinking behind how we made them. Published date,16 April 2026 9 min read Explainers](https:\/\/www.sharesies.nz\/learn\/how-we-created-our-advised-portfolios)\n- [![](https:\/\/sharesies-eg3voq9njjf7.imgix.net\/nN4FnDcK51AO2ffasVrb4\/0c7d48d97d2634bb50fe9788697b40af\/SL_1080-1080-post_AFIC.jpg?auto=format,compress&cs=srgb&w=1920&q=75)AFIC's hundred-year long game (Australian Foundation Investment Company) Geoff Driver is General Manager at Australian Foundation Investment Company (AFIC), the century-old ASX mainstay managing \\$10B in assets. Published date,19 March 2026 1 min read Shared Lunch](https:\/\/www.sharesies.nz\/learn\/afics-hundred-year-long-game-australian-foundation-investment-company)\n\n## Sharesies footer\n## Get the Sharesies app\n### Primary links\nInvest\n\n- [Overview](https:\/\/www.sharesies.nz\/investments)\n- [Advised portfolios](https:\/\/www.sharesies.nz\/advised-portfolios)\n- [Auto-invest](https:\/\/www.sharesies.nz\/auto-invest)\n- [Agribusiness](https:\/\/www.sharesies.nz\/farmers)\n- [Companies](https:\/\/www.sharesies.nz\/investments\/companies)\n- [Exchange-traded funds](https:\/\/www.sharesies.nz\/investments\/exchange-traded-funds)\n- [Managed funds](https:\/\/www.sharesies.nz\/investments\/managed-funds)\n- [New Zealand shares](https:\/\/www.sharesies.nz\/investments\/buy-nz-shares)\n- [Australian shares](https:\/\/www.sharesies.nz\/investments\/buy-australian-shares)\n- [US shares](https:\/\/www.sharesies.nz\/investments\/buy-us-shares)\n\n- [Invest](https:\/\/www.sharesies.nz\/investments)\n- [Advised portfolios](https:\/\/www.sharesies.nz\/advised-portfolios)\n- [Auto-invest](https:\/\/www.sharesies.nz\/auto-invest)\n- [Agribusiness](https:\/\/www.sharesies.nz\/farmers)\n- [Companies](https:\/\/www.sharesies.nz\/investments\/companies)\n- [Exchange-traded funds](https:\/\/www.sharesies.nz\/investments\/exchange-traded-funds)\n- [Managed funds](https:\/\/www.sharesies.nz\/investments\/managed-funds)\n- [New Zealand shares](https:\/\/www.sharesies.nz\/investments\/buy-nz-shares)\n- [Australian shares](https:\/\/www.sharesies.nz\/investments\/buy-australian-shares)\n- [US shares](https:\/\/www.sharesies.nz\/investments\/buy-us-shares)\n\nLearn\n\n- [Articles](https:\/\/www.sharesies.nz\/learn)\n- [Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n- [Bank Of Kid](https:\/\/www.sharesies.nz\/nz-bank-of-kid)\n- [Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n- [Shared Lunch](https:\/\/www.sharesies.nz\/shared-lunch)\n- [Go-to Guides](https:\/\/www.sharesies.nz\/learn\/guides)\n- [Sharesies Index](https:\/\/www.sharesies.nz\/sharesies-index)\n- [The Sharesies Guide to Investing](https:\/\/www.sharesies.nz\/the-sharesies-guide-to-investing)\n\n- [Learn](https:\/\/www.sharesies.nz\/learn)\n- [Investing basics](https:\/\/www.sharesies.nz\/learn\/investing-basics)\n- [Bank Of Kid](https:\/\/www.sharesies.nz\/nz-bank-of-kid)\n- [Investor Journeys](https:\/\/www.sharesies.nz\/learn\/investor-journeys)\n- [Shared Lunch](https:\/\/www.sharesies.nz\/shared-lunch)\n- [Go-to Guides](https:\/\/www.sharesies.nz\/learn\/guides)\n- [Sharesies Index](https:\/\/www.sharesies.nz\/sharesies-index)\n- [The Sharesies Guide to Investing](https:\/\/www.sharesies.nz\/the-sharesies-guide-to-investing)\n\nKiwiSaver\n\n- [Overview](https:\/\/www.sharesies.nz\/kiwisaver)\n- [Base funds](https:\/\/www.sharesies.nz\/kiwisaver\/base-funds)\n- [Self-select](https:\/\/www.sharesies.nz\/kiwisaver\/self-select)\n- [Make a plan](https:\/\/www.sharesies.nz\/kiwisaver\/make-a-plan)\n- [The Payoff](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)\n- [Documents](https:\/\/www.sharesies.nz\/kiwisaver\/documents)\n- [Fees](https:\/\/www.sharesies.nz\/pricing?tab=kiwisaver&scroll=kiwisaver)\n- [Performance](https:\/\/www.sharesies.nz\/kiwisaver\/performance)\n- [Articles](https:\/\/www.sharesies.nz\/learn\/kiwisaver)\n\n- [KiwiSaver](https:\/\/www.sharesies.nz\/kiwisaver)\n- [Base funds](https:\/\/www.sharesies.nz\/kiwisaver\/base-funds)\n- [Self-select](https:\/\/www.sharesies.nz\/kiwisaver\/self-select)\n- [Make a plan](https:\/\/www.sharesies.nz\/kiwisaver\/make-a-plan)\n- [The Payoff](https:\/\/www.sharesies.nz\/podcasts\/the-payoff)\n- [Documents](https:\/\/www.sharesies.nz\/kiwisaver\/documents)\n- [Fees](https:\/\/www.sharesies.nz\/pricing?tab=kiwisaver&scroll=kiwisaver)\n- [Performance](https:\/\/www.sharesies.nz\/kiwisaver\/performance)\n- [Articles](https:\/\/www.sharesies.nz\/learn\/kiwisaver)\n\nAbout\n\n- [About us](https:\/\/www.sharesies.nz\/about)\n- [Careers](https:\/\/www.sharesies.nz\/careers)\n- [Blog](https:\/\/www.sharesies.nz\/blog)\n- [Contact](https:\/\/www.sharesies.nz\/contact)\n\n- [About](https:\/\/www.sharesies.nz\/about)\n- [Careers](https:\/\/www.sharesies.nz\/careers)\n- [Blog](https:\/\/www.sharesies.nz\/blog)\n- [Contact](https:\/\/www.sharesies.nz\/contact)\n\n[Pricing](https:\/\/www.sharesies.nz\/pricing)\n\n[Crypto](https:\/\/www.sharesies.nz\/crypto)\n\n[Spend](https:\/\/www.sharesies.nz\/spend)\n\n[Save](https:\/\/www.sharesies.nz\/save)\n\n[Kids Accounts](https:\/\/www.sharesies.nz\/kids-accounts)\n\nProtect\n\n- [Car insurance](https:\/\/www.sharesies.nz\/protect\/car-insurance)\n- [Pet insurance](https:\/\/www.sharesies.nz\/protect\/pet-insurance)\n- [Wills](https:\/\/www.sharesies.nz\/protect\/wills)\n\n- [Protect](https:\/\/www.sharesies.nz\/protect\/car-insurance)\n- [Car insurance](https:\/\/www.sharesies.nz\/protect\/car-insurance)\n- [Pet insurance](https:\/\/www.sharesies.nz\/protect\/pet-insurance)\n- [Wills](https:\/\/www.sharesies.nz\/protect\/wills)\n\n[Gifts](https:\/\/www.sharesies.nz\/gifts)\n\n[Airpoints™](https:\/\/www.sharesies.nz\/airpoints)\n\n### Help and document links\n- [Help centre](https:\/\/intercom.help\/sharesies\/en\/)\n- [Legal documents](https:\/\/www.sharesies.nz\/legal-documents)\n- [Complaints](https:\/\/www.sharesies.nz\/complaints)\n### Social links\n\nInvesting involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. Any information we provide on this website is general only and current at the time written. For advice we provide, see our [disclosure statement](https:\/\/www.sharesies.nz\/legal-documents\/advice-disclosure-statement).\n\nSharesies Limited is an accredited participant on the [NZX](https:\/\/www.nzx.com\/).\n\nSharesies Investment Management Limited is the issuer of the Sharesies KiwiSaver Scheme and PIE Save. The product disclosure statements have been lodged, and may be viewed on the [Disclose Register](https:\/\/www.disclose-register.companiesoffice.govt.nz\/) or on [our documents page](https:\/\/www.sharesies.nz\/kiwisaver\/documents). Portfolios displayed are a guide, not from a real customer. For informational purposes only.\n\n© 2026 Sharesies Limited. All rights reserved.\n\n![](https:\/\/www.sharesies.nz\/_next\/image?url=%2Fimages%2Ffooter%2Fshielded-logo.png&w=128&q=75)\n\n6fc70cd208e4c5636964802ce4bd9c146affd8b9","attrs_readable_markdown":"## What’s an ETF?\nImagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties.\n\n[Exchange-traded funds (ETFs)](https:\/\/www.sharesies.nz\/investments\/exchange-traded-funds) are like the fruit basket of the share market.\n\n### **F = fund**\nWhen you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a **fund**). ‘Units’ represent your ownership of a slice of this overall fund.\n\nSo while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments.\n\n### **ET = exchange-traded**\nUnlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange).\n\n## Why invest in an ETF?\n### **Diversification**\nETFs give you a way to [diversify your investments](https:\/\/www.sharesies.nz\/learn\/the-different-dimensions-of-diversification) (spread your money across lots of different things).\n\nInvesting in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value.\n\nOf course, you could do this by buying lots of individual investments—but ETFs let you do this in one go.\n\n### **Transparency**\nBecause ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively.\n\n### **Liquidity**\nAs well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more [liquid](https:\/\/www.sharesies.nz\/learn\/a-deep-dive-into-investment-liquidity) investment than managed funds.\n\nDepending on your [investment horizon](https:\/\/www.sharesies.nz\/learn\/whats-an-investment-horizon), this may or may not be relevant—but it can help if you might need the money sooner\\!\n\n## Index versus active\nThe investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs.\n\n### **Index ETFs**\nIndex ETFs try to match (or ‘track’) the performance of an [index](https:\/\/www.sharesies.nz\/learn\/how-an-index-fund-works), by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy.\n\nThis passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index.\n\nKeep in mind, though, that [not all index ETFs are the same](https:\/\/www.sharesies.nz\/learn\/how-to-compare-funds-tracking-the-same-index), even if they’re tracking the same thing\\!\n\n### **Active ETFs**\nWith active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included.\n\nActive ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research).\n\n## What ETFs can I invest in?\nAcross those fund management styles, there are thousands of ETFs you can invest in, including:\n\n### **Broad market index ETFs**\nA broad market index ETF tracks an index across an exchange, like the NZX 50 or S\\&P 500—attempting to mirror the performance of the share market as a whole.\n\n### **Thematic**\nThematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria.\n\n### **ESG**\nA subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies.\n\nSome are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard.\n\n## ETFs and you\nNow that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your [due diligence](https:\/\/www.sharesies.nz\/learn\/due-diligence-a-fancy-word-for-doing-your-homework) and check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on:\n\n- what index, sector, or asset the ETF return aims to replicate\n- the fees and costs\n- the risks of investing in the ETF\n- how to complain if you have a problem with the ETF.\n\nYou can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF.\n***\n#### Ok, now for the legal bit\nInvesting involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a [Target Market Determination and IDPS Guide](https:\/\/sharesies.com.au\/disclosures) for Sharesies Australian customers—can be found on our relevant NZ or Australian website.","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":998,\"\/Finance\/Investing\":997,\"\/Finance\/Investing\/Funds\":977}","ml_types_json":"{\"\/Article\":996,\"\/Article\/Definitions\":891}","ml_intent_types_json":"{\"Informational\":999}","meta_language":"en","attrs_author":null,"attrs_publish_time":0,"attrs_original_publish_time":1663128218,"attrs_is_republished":0,"attrs_nr_words":"1805","attrs_boilerpipe_nr_words":"990","body_ext_links_number":19,"body_int_links_number":60,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":0,"src_redirect":"","download_time_msec":1402,"download_ttfb_msec":1400,"download_size":43736}

3. Robots.txt Check

Query:

Response:

4. Spam/Ban Check

Query:

Response:

5. Seen Status Check

ℹ️ Skipped - page is already crawled

📄

INDEXABLE

✅

CRAWLED

1 day ago

🤖

ROBOTS ALLOWED

Page Info Filters

Filter	Status	Condition	Details
HTTP status	PASS	`download_http_code = 200`	HTTP 200
Age cutoff	PASS	`download_stamp > now() - 6 MONTH`	0 months ago
History drop	PASS	`isNull(history_drop_reason)`	No drop reason
Spam/ban	PASS	`fh_dont_index != 1 AND ml_spam_score = 0`	ml_spam_score=0
Canonical	PASS	`meta_canonical IS NULL OR = '' OR = src_unparsed`	Not set

Page Details

Property

Value

URL

https://www.sharesies.nz/learn/etf-exchange-traded-funds-explained

Last Crawled

2026-04-24 16:23:23 (1 day ago)

First Indexed

2022-09-14 04:03:38 (3 years ago)

HTTP Status Code

200

Content

Meta Title

What's an exchange-traded fund (ETF)?—Sharesies New Zealand

Meta Description

Exchange-traded funds (ETFs) are like the investing world’s bundle deal, so should you consider adding them to your Portfolio?

Meta Canonical

null

Boilerpipe Text

What’s an ETF? Imagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties. Exchange-traded funds (ETFs) are like the fruit basket of the share market. F = fund When you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a fund ). ‘Units’ represent your ownership of a slice of this overall fund. So while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments. ET = exchange-traded Unlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange). Why invest in an ETF? Diversification ETFs give you a way to diversify your investments (spread your money across lots of different things). Investing in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value. Of course, you could do this by buying lots of individual investments—but ETFs let you do this in one go. Transparency Because ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively. Liquidity As well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more liquid investment than managed funds. Depending on your investment horizon , this may or may not be relevant—but it can help if you might need the money sooner! Index versus active The investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs. Index ETFs Index ETFs try to match (or ‘track’) the performance of an index , by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy. This passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index. Keep in mind, though, that not all index ETFs are the same , even if they’re tracking the same thing! Active ETFs With active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included. Active ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research). What ETFs can I invest in? Across those fund management styles, there are thousands of ETFs you can invest in, including: Broad market index ETFs A broad market index ETF tracks an index across an exchange, like the NZX 50 or S&P 500—attempting to mirror the performance of the share market as a whole. Thematic Thematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria. ESG A subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies. Some are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard. ETFs and you Now that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your due diligence and check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on: what index, sector, or asset the ETF return aims to replicate the fees and costs the risks of investing in the ETF how to complain if you have a problem with the ETF. You can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF. Ok, now for the legal bit Investing involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a Target Market Determination and IDPS Guide for Sharesies Australian customers—can be found on our relevant NZ or Australian website.

Markdown

[Skip to main content](https://www.sharesies.nz/learn/etf-exchange-traded-funds-explained#main) [Personal](https://www.sharesies.nz/)[Business](https://www.sharesies.nz/business) - [Home](https://www.sharesies.nz/) - Invest - [Overview](https://www.sharesies.nz/investments) - [Advised portfolios](https://www.sharesies.nz/advised-portfolios) - [Auto-invest](https://www.sharesies.nz/auto-invest) - [Agribusiness](https://www.sharesies.nz/farmers) - [Investing basics](https://www.sharesies.nz/learn/investing-basics) - [Kids Accounts](https://www.sharesies.nz/kids-accounts) - KiwiSaver - [Overview](https://www.sharesies.nz/kiwisaver) - [Base funds](https://www.sharesies.nz/kiwisaver/base-funds) - [Self-select](https://www.sharesies.nz/kiwisaver/self-select) - [Make a plan](https://www.sharesies.nz/kiwisaver/make-a-plan) - [The Payoff](https://www.sharesies.nz/podcasts/the-payoff) - [Documents](https://www.sharesies.nz/kiwisaver/documents) - [Fees](https://www.sharesies.nz/pricing?tab=kiwisaver&scroll=kiwisaver) - [Performance](https://www.sharesies.nz/kiwisaver/performance) - [Articles](https://www.sharesies.nz/learn/kiwisaver) - [Crypto](https://www.sharesies.nz/crypto) - [Spend](https://www.sharesies.nz/spend) - [Save](https://www.sharesies.nz/save) - Protect - [Car insurance](https://www.sharesies.nz/protect/car-insurance) - [Pet insurance](https://www.sharesies.nz/protect/pet-insurance) - [Wills](https://www.sharesies.nz/protect/wills) - Learn - [Overview](https://www.sharesies.nz/learn) - [Investing basics](https://www.sharesies.nz/learn/investing-basics) - [Bank Of Kid](https://www.sharesies.nz/nz-bank-of-kid) - [Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - [Shared Lunch](https://www.sharesies.nz/shared-lunch) - [Sharesies Index](https://www.sharesies.nz/sharesies-index) - [The KiwiSaver podcast](https://www.sharesies.nz/podcasts/the-payoff) - [Log in](https://app.sharesies.com/login) - [Sign up](https://app.sharesies.com/sign-up) - [About](https://www.sharesies.nz/about) - [Gifts](https://www.sharesies.nz/gifts) - [Pricing](https://www.sharesies.nz/pricing) - [Careers](https://www.sharesies.nz/careers) - [Contact](https://www.sharesies.nz/contact) - [Help centre](https://intercom.help/sharesies/en/) [Personal](https://www.sharesies.nz/)[Business](https://www.sharesies.nz/business) - [Log in](https://app.sharesies.com/login) - [Sign up](https://app.sharesies.com/sign-up) [Log in](https://app.sharesies.com/login) - Invest [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Fks%2Finvest-3d-render.png&w=1920&q=100)InvestLong-term investing on your terms, with access to NZ, US, and Aussie markets.Explore investments](https://www.sharesies.nz/investments) [Advised portfoliosGet expert-made portfolios recommended to you to help you reach your wealth-building goals.](https://www.sharesies.nz/advised-portfolios) [Auto-investSit back and put your investing on repeat.](https://www.sharesies.nz/auto-invest) [AgribusinessBuild a diversified portfolio and create a resilient source of off-farm income.](https://www.sharesies.nz/farmers) Explore [Sharesies Funds](https://www.sharesies.nz/investments/sharesies-funds)[Companies](https://www.sharesies.nz/investments/companies)[Exchange-traded funds](https://www.sharesies.nz/investments/exchange-traded-funds)[Managed funds](https://www.sharesies.nz/investments/managed-funds)[Gifts](https://www.sharesies.nz/gifts)[Investing basics](https://www.sharesies.nz/learn/investing-basics)[Kids Accounts](https://www.sharesies.nz/kids-accounts) - KiwiSaver [![](https://www.sharesies.nz/_next/image?url=%2F_next%2Fstatic%2Fmedia%2Fks-overview.f2248068.png&w=1920&q=100)KiwiSaverInvest for your retirement or first home with more choice and control.See overview](https://www.sharesies.nz/kiwisaver) [Base fundsChoose from eight base funds, ranging from conservative to high growth.](https://www.sharesies.nz/kiwisaver/base-funds) [Self-selectPick from over 150 companies and ETFs listed on NZ and US exchanges.](https://www.sharesies.nz/kiwisaver/self-select) [Make a planSee what an investment plan as unique as you are could look like.](https://www.sharesies.nz/kiwisaver/make-a-plan) Explore [Fees](https://www.sharesies.nz/pricing?tab=kiwisaver&scroll=kiwisaver)[Performance](https://www.sharesies.nz/kiwisaver/performance)[Documents](https://www.sharesies.nz/kiwisaver/documents)[Articles](https://www.sharesies.nz/learn/kiwisaver)[The Payoff podcast](https://www.sharesies.nz/podcasts/the-payoff)[US Markets](https://www.sharesies.nz/kiwisaver/us-markets)[Kids accounts](https://www.sharesies.nz/kiwisaver/kids) - [Crypto](https://www.sharesies.nz/crypto) - [Spend](https://www.sharesies.nz/spend) - [Save](https://www.sharesies.nz/save) - Protect - [Car insurance](https://www.sharesies.nz/protect/car-insurance) - [Pet insurance](https://www.sharesies.nz/protect/pet-insurance) - [Wills](https://www.sharesies.nz/protect/wills) - [Pricing](https://www.sharesies.nz/pricing) - Learn [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Foverview-global.png&w=1920&q=100)LearnRead, watch, or listen your way to financial empowerment.](https://www.sharesies.nz/learn) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Finvesting-basics.png&w=1920&q=100) Investing basics](https://www.sharesies.nz/learn/investing-basics) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Fbank-of-kid.png&w=1920&q=100) Bank Of Kid](https://www.sharesies.nz/nz-bank-of-kid) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-journey-sep.jpg&w=1920&q=100) Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Fshared-lunch.png&w=1920&q=100) Shared Lunch](https://www.sharesies.nz/shared-lunch) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-index.png&w=1920&q=100) Sharesies Index](https://www.sharesies.nz/sharesies-index) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Fthe-payoff-menu.png&w=1920&q=100) The KiwiSaver podcast](https://www.sharesies.nz/podcasts/the-payoff) [Learn](https://www.sharesies.nz/learn) Search ### Browse categories - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Finvesting-basics.png&w=1920&q=100)Investing basics](https://www.sharesies.nz/learn/investing-basics) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Fbuild-your-portfolio.jpg&w=1920&q=100)Build your Portfolio](https://www.sharesies.nz/learn/build-your-portfolio) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Fexplainers.jpg&w=1920&q=100)Explainers](https://www.sharesies.nz/learn/explainers) - [![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Fheader%2Flearn%2Finvestor-journey-sep.jpg&w=1920&q=100)Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - [Learn](https://www.sharesies.nz/learn) - [Investing basics](https://www.sharesies.nz/learn/investing-basics) - [Build your Portfolio](https://www.sharesies.nz/learn/build-your-portfolio) - [Explainers](https://www.sharesies.nz/learn/explainers) - [Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - Search Close # What's an exchange-traded fund (ETF)?What's an exchange-traded fund (ETF)? Explainers Exchange-traded funds (ETFs) are like the investing world’s bundle deal, so should you consider adding them to your Portfolio? Published date,14 September 2022 4 min read ![A wooden bowl of assorted citrus fruits is sitting on a tablecloth on top of a wooden table, in front of a light pink background.](https://sharesies-eg3voq9njjf7.imgix.net/7ngSTsBYiHaGaSKWBH7Oea/98f266f5bcb9803bdcec23cc3c591d5d/etfs-explained.jpg?auto=format,compress&cs=srgb&w=1920&q=75) Share ## What’s an ETF? Imagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties. [Exchange-traded funds (ETFs)](https://www.sharesies.nz/investments/exchange-traded-funds) are like the fruit basket of the share market. ### **F = fund** When you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a **fund**). ‘Units’ represent your ownership of a slice of this overall fund. So while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments. ### **ET = exchange-traded** Unlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange). ## Why invest in an ETF? ### **Diversification** ETFs give you a way to [diversify your investments](https://www.sharesies.nz/learn/the-different-dimensions-of-diversification) (spread your money across lots of different things). Investing in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value. Of course, you could do this by buying lots of individual investments—but ETFs let you do this in one go. ### **Transparency** Because ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively. ### **Liquidity** As well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more [liquid](https://www.sharesies.nz/learn/a-deep-dive-into-investment-liquidity) investment than managed funds. Depending on your [investment horizon](https://www.sharesies.nz/learn/whats-an-investment-horizon), this may or may not be relevant—but it can help if you might need the money sooner\! ## Index versus active The investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs. ### **Index ETFs** Index ETFs try to match (or ‘track’) the performance of an [index](https://www.sharesies.nz/learn/how-an-index-fund-works), by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy. This passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index. Keep in mind, though, that [not all index ETFs are the same](https://www.sharesies.nz/learn/how-to-compare-funds-tracking-the-same-index), even if they’re tracking the same thing\! ### **Active ETFs** With active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included. Active ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research). ## What ETFs can I invest in? Across those fund management styles, there are thousands of ETFs you can invest in, including: ### **Broad market index ETFs** A broad market index ETF tracks an index across an exchange, like the NZX 50 or S\&P 500—attempting to mirror the performance of the share market as a whole. ### **Thematic** Thematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria. ### **ESG** A subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies. Some are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard. ## ETFs and you Now that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your [due diligence](https://www.sharesies.nz/learn/due-diligence-a-fancy-word-for-doing-your-homework) and check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on: - what index, sector, or asset the ETF return aims to replicate - the fees and costs - the risks of investing in the ETF - how to complain if you have a problem with the ETF. You can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF. *** #### Ok, now for the legal bit Investing involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a [Target Market Determination and IDPS Guide](https://sharesies.com.au/disclosures) for Sharesies Australian customers—can be found on our relevant NZ or Australian website. ## Join over 1,000,000 investors [Sign up](https://app.sharesies.com/sign-up) ![](https://sharesies-eg3voq9njjf7.imgix.net/4jwxGXQ2wXDYoeoivhoaS1/a0cdd695f323f3f57831932aab361b04/Join-more-than-X-investors_hand.png?auto=format,compress&cs=srgb&w=1920&q=75) ## More articles - [![](https://sharesies-eg3voq9njjf7.imgix.net/3APkZMnv1Ki2zgwnxMsKG4/4ec661e5a93137bd36bfa3246bebe4af/article-hero-rebalancing-your-advised-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we rebalance your advised portfolio Learn how we keep the investments in your advised portfolio aligned with your goals over time. Published date,17 April 2026 4 min read Explainers](https://www.sharesies.nz/learn/how-we-rebalance-your-advised-portfolio) - [![](https://sharesies-eg3voq9njjf7.imgix.net/rKHNnaLsQtJqg5hZaKB4l/a17a0eb903f6c990380c633425231df1/article-hero-how-we-created-our-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we created our advised portfolios When we set out to build advised portfolios, our goal was simple: create diverse, low-fee, tax-efficient portfolios. Here's a look at the thinking behind how we made them. Published date,16 April 2026 9 min read Explainers](https://www.sharesies.nz/learn/how-we-created-our-advised-portfolios) - [![](https://sharesies-eg3voq9njjf7.imgix.net/nN4FnDcK51AO2ffasVrb4/0c7d48d97d2634bb50fe9788697b40af/SL_1080-1080-post_AFIC.jpg?auto=format,compress&cs=srgb&w=1920&q=75)AFIC's hundred-year long game (Australian Foundation Investment Company) Geoff Driver is General Manager at Australian Foundation Investment Company (AFIC), the century-old ASX mainstay managing \$10B in assets. Published date,19 March 2026 1 min read Shared Lunch](https://www.sharesies.nz/learn/afics-hundred-year-long-game-australian-foundation-investment-company) - [![](https://sharesies-eg3voq9njjf7.imgix.net/3APkZMnv1Ki2zgwnxMsKG4/4ec661e5a93137bd36bfa3246bebe4af/article-hero-rebalancing-your-advised-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we rebalance your advised portfolio Learn how we keep the investments in your advised portfolio aligned with your goals over time. Published date,17 April 2026 4 min read Explainers](https://www.sharesies.nz/learn/how-we-rebalance-your-advised-portfolio) - [![](https://sharesies-eg3voq9njjf7.imgix.net/rKHNnaLsQtJqg5hZaKB4l/a17a0eb903f6c990380c633425231df1/article-hero-how-we-created-our-portfolios.png?auto=format,compress&cs=srgb&w=1920&q=75)How we created our advised portfolios When we set out to build advised portfolios, our goal was simple: create diverse, low-fee, tax-efficient portfolios. Here's a look at the thinking behind how we made them. Published date,16 April 2026 9 min read Explainers](https://www.sharesies.nz/learn/how-we-created-our-advised-portfolios) - [![](https://sharesies-eg3voq9njjf7.imgix.net/nN4FnDcK51AO2ffasVrb4/0c7d48d97d2634bb50fe9788697b40af/SL_1080-1080-post_AFIC.jpg?auto=format,compress&cs=srgb&w=1920&q=75)AFIC's hundred-year long game (Australian Foundation Investment Company) Geoff Driver is General Manager at Australian Foundation Investment Company (AFIC), the century-old ASX mainstay managing \$10B in assets. Published date,19 March 2026 1 min read Shared Lunch](https://www.sharesies.nz/learn/afics-hundred-year-long-game-australian-foundation-investment-company) ## Sharesies footer ## Get the Sharesies app ### Primary links Invest - [Overview](https://www.sharesies.nz/investments) - [Advised portfolios](https://www.sharesies.nz/advised-portfolios) - [Auto-invest](https://www.sharesies.nz/auto-invest) - [Agribusiness](https://www.sharesies.nz/farmers) - [Companies](https://www.sharesies.nz/investments/companies) - [Exchange-traded funds](https://www.sharesies.nz/investments/exchange-traded-funds) - [Managed funds](https://www.sharesies.nz/investments/managed-funds) - [New Zealand shares](https://www.sharesies.nz/investments/buy-nz-shares) - [Australian shares](https://www.sharesies.nz/investments/buy-australian-shares) - [US shares](https://www.sharesies.nz/investments/buy-us-shares) - [Invest](https://www.sharesies.nz/investments) - [Advised portfolios](https://www.sharesies.nz/advised-portfolios) - [Auto-invest](https://www.sharesies.nz/auto-invest) - [Agribusiness](https://www.sharesies.nz/farmers) - [Companies](https://www.sharesies.nz/investments/companies) - [Exchange-traded funds](https://www.sharesies.nz/investments/exchange-traded-funds) - [Managed funds](https://www.sharesies.nz/investments/managed-funds) - [New Zealand shares](https://www.sharesies.nz/investments/buy-nz-shares) - [Australian shares](https://www.sharesies.nz/investments/buy-australian-shares) - [US shares](https://www.sharesies.nz/investments/buy-us-shares) Learn - [Articles](https://www.sharesies.nz/learn) - [Investing basics](https://www.sharesies.nz/learn/investing-basics) - [Bank Of Kid](https://www.sharesies.nz/nz-bank-of-kid) - [Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - [Shared Lunch](https://www.sharesies.nz/shared-lunch) - [Go-to Guides](https://www.sharesies.nz/learn/guides) - [Sharesies Index](https://www.sharesies.nz/sharesies-index) - [The Sharesies Guide to Investing](https://www.sharesies.nz/the-sharesies-guide-to-investing) - [Learn](https://www.sharesies.nz/learn) - [Investing basics](https://www.sharesies.nz/learn/investing-basics) - [Bank Of Kid](https://www.sharesies.nz/nz-bank-of-kid) - [Investor Journeys](https://www.sharesies.nz/learn/investor-journeys) - [Shared Lunch](https://www.sharesies.nz/shared-lunch) - [Go-to Guides](https://www.sharesies.nz/learn/guides) - [Sharesies Index](https://www.sharesies.nz/sharesies-index) - [The Sharesies Guide to Investing](https://www.sharesies.nz/the-sharesies-guide-to-investing) KiwiSaver - [Overview](https://www.sharesies.nz/kiwisaver) - [Base funds](https://www.sharesies.nz/kiwisaver/base-funds) - [Self-select](https://www.sharesies.nz/kiwisaver/self-select) - [Make a plan](https://www.sharesies.nz/kiwisaver/make-a-plan) - [The Payoff](https://www.sharesies.nz/podcasts/the-payoff) - [Documents](https://www.sharesies.nz/kiwisaver/documents) - [Fees](https://www.sharesies.nz/pricing?tab=kiwisaver&scroll=kiwisaver) - [Performance](https://www.sharesies.nz/kiwisaver/performance) - [Articles](https://www.sharesies.nz/learn/kiwisaver) - [KiwiSaver](https://www.sharesies.nz/kiwisaver) - [Base funds](https://www.sharesies.nz/kiwisaver/base-funds) - [Self-select](https://www.sharesies.nz/kiwisaver/self-select) - [Make a plan](https://www.sharesies.nz/kiwisaver/make-a-plan) - [The Payoff](https://www.sharesies.nz/podcasts/the-payoff) - [Documents](https://www.sharesies.nz/kiwisaver/documents) - [Fees](https://www.sharesies.nz/pricing?tab=kiwisaver&scroll=kiwisaver) - [Performance](https://www.sharesies.nz/kiwisaver/performance) - [Articles](https://www.sharesies.nz/learn/kiwisaver) About - [About us](https://www.sharesies.nz/about) - [Careers](https://www.sharesies.nz/careers) - [Blog](https://www.sharesies.nz/blog) - [Contact](https://www.sharesies.nz/contact) - [About](https://www.sharesies.nz/about) - [Careers](https://www.sharesies.nz/careers) - [Blog](https://www.sharesies.nz/blog) - [Contact](https://www.sharesies.nz/contact) [Pricing](https://www.sharesies.nz/pricing) [Crypto](https://www.sharesies.nz/crypto) [Spend](https://www.sharesies.nz/spend) [Save](https://www.sharesies.nz/save) [Kids Accounts](https://www.sharesies.nz/kids-accounts) Protect - [Car insurance](https://www.sharesies.nz/protect/car-insurance) - [Pet insurance](https://www.sharesies.nz/protect/pet-insurance) - [Wills](https://www.sharesies.nz/protect/wills) - [Protect](https://www.sharesies.nz/protect/car-insurance) - [Car insurance](https://www.sharesies.nz/protect/car-insurance) - [Pet insurance](https://www.sharesies.nz/protect/pet-insurance) - [Wills](https://www.sharesies.nz/protect/wills) [Gifts](https://www.sharesies.nz/gifts) [Airpoints™](https://www.sharesies.nz/airpoints) ### Help and document links - [Help centre](https://intercom.help/sharesies/en/) - [Legal documents](https://www.sharesies.nz/legal-documents) - [Complaints](https://www.sharesies.nz/complaints) ### Social links Investing involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. Any information we provide on this website is general only and current at the time written. For advice we provide, see our [disclosure statement](https://www.sharesies.nz/legal-documents/advice-disclosure-statement). Sharesies Limited is an accredited participant on the [NZX](https://www.nzx.com/). Sharesies Investment Management Limited is the issuer of the Sharesies KiwiSaver Scheme and PIE Save. The product disclosure statements have been lodged, and may be viewed on the [Disclose Register](https://www.disclose-register.companiesoffice.govt.nz/) or on [our documents page](https://www.sharesies.nz/kiwisaver/documents). Portfolios displayed are a guide, not from a real customer. For informational purposes only. © 2026 Sharesies Limited. All rights reserved. ![](https://www.sharesies.nz/_next/image?url=%2Fimages%2Ffooter%2Fshielded-logo.png&w=128&q=75) 6fc70cd208e4c5636964802ce4bd9c146affd8b9

Readable Markdown

## What’s an ETF? Imagine you’re browsing through fruit at a farmers’ market. You could pick out a single pineapple, or buy a basket brimming with different types of fruit. Your basket might have a little of everything, or it might be grouped in a particular way—like citrus fruits, or your seasonal specialties. [Exchange-traded funds (ETFs)](https://www.sharesies.nz/investments/exchange-traded-funds) are like the fruit basket of the share market. ### **F = fund** When you invest in an ETF, your money is pooled together with other investors to buy into a basket of investments (called a **fund**). ‘Units’ represent your ownership of a slice of this overall fund. So while you may only hold one unit in a fund, that one unit represents a holding in all of the underlying investments of the fund—which could be many kinds of investments. ### **ET = exchange-traded** Unlike units in managed funds, which are traded directly through a fund provider, ETFs trade on an exchange (like the New Zealand Stock Exchange). ## Why invest in an ETF? ### **Diversification** ETFs give you a way to [diversify your investments](https://www.sharesies.nz/learn/the-different-dimensions-of-diversification) (spread your money across lots of different things). Investing in one company means you’re completely dependent on the performance of that one company. If your money is spread across lots of different investments, you take less of a hit if one of your investments loses value. Of course, you could do this by buying lots of individual investments—but ETFs let you do this in one go. ### **Transparency** Because ETFs are listed on an exchange, the unit price is updated when the exchange is open for trading—compared to managed funds, which generally only report their unit prices retrospectively. ### **Liquidity** As well as the price being updated more regularly, ETFs are also able to be bought and sold at any time the exchange is open (provided there are buyers and sellers!)—which can make them a more [liquid](https://www.sharesies.nz/learn/a-deep-dive-into-investment-liquidity) investment than managed funds. Depending on your [investment horizon](https://www.sharesies.nz/learn/whats-an-investment-horizon), this may or may not be relevant—but it can help if you might need the money sooner\! ## Index versus active The investments in an ETF aren't chosen at random—they’re designed to follow a set of rules or conditions. ETFs generally fall into two fund management styles (active or passive investing), which in turn create index ETFs and active ETFs. ### **Index ETFs** Index ETFs try to match (or ‘track’) the performance of an [index](https://www.sharesies.nz/learn/how-an-index-fund-works), by investing in things that are included on that index. These ETFs fall under the umbrella of a ‘passive’ investing strategy. This passive approach means index ETFs tend to broadly follow the movements of an industry, theme, or the overall market—depending on the focus of the index and how closely the ETF tracks the index. Keep in mind, though, that [not all index ETFs are the same](https://www.sharesies.nz/learn/how-to-compare-funds-tracking-the-same-index), even if they’re tracking the same thing\! ### **Active ETFs** With active ETFs, fund providers actively pick investments based on their own criteria. An index might still be used as a guide or benchmark, but there’ll be analysts actively managing what’s included. Active ETFs usually come with increased fees to cover any additional fund provider costs (like salaries and other research). ## What ETFs can I invest in? Across those fund management styles, there are thousands of ETFs you can invest in, including: ### **Broad market index ETFs** A broad market index ETF tracks an index across an exchange, like the NZX 50 or S\&P 500—attempting to mirror the performance of the share market as a whole. ### **Thematic** Thematic ETFs are focused on a specific theme, trend, or sector—whether it be renewable energy, healthcare, gender diversity, or video gaming … the list goes on! These can be actively or passively managed, selecting investments or tracking indices that meet a certain criteria. ### **ESG** A subset of thematic ETFs are ESG (environmental, social, governance) funds. These provide an opportunity to invest in responsible companies across industry, country, or asset type. Some even focus on specific areas of responsible ESG practices, like clean energy or women-led companies. Some are passively managed, tracking an ESG index. Others actively include investments that meet a certain responsible standard, or track a larger index and then exclude companies that fail that standard. ## ETFs and you Now that you know how ETFs work, you can take a look at whether they make sense for your portfolio and broader investing strategy. Do your [due diligence](https://www.sharesies.nz/learn/due-diligence-a-fancy-word-for-doing-your-homework) and check the fund’s product disclosure statement (PDS) before you invest. It’ll include information on: - what index, sector, or asset the ETF return aims to replicate - the fees and costs - the risks of investing in the ETF - how to complain if you have a problem with the ETF. You can also check the monthly and quarterly reports for a glimpse of the funds’ holdings. If you have questions about an ETF, you can contact the fund provider or speak to a licensed financial adviser. You can also check recent market announcements on the exchange’s website for new information on an ETF. *** #### Ok, now for the legal bit Investing involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial adviser, or seek independent legal, taxation, or other advice when considering whether an investment is appropriate for you. Past performance is not a guarantee of future performance. This content is brought to you by Sharesies Limited (NZ) in New Zealand and Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation, and needs. We do not provide recommendations. You should always read the product disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a [Target Market Determination and IDPS Guide](https://sharesies.com.au/disclosures) for Sharesies Australian customers—can be found on our relevant NZ or Australian website.

ML Classification

ML Categories

/Finance		99.8%
/Finance/Investing		99.7%
/Finance/Investing/Funds		97.7%

Raw JSON

{
    "/Finance": 998,
    "/Finance/Investing": 997,
    "/Finance/Investing/Funds": 977
}

ML Page Types

/Article		99.6%
/Article/Definitions		89.1%

Raw JSON

{
    "/Article": 996,
    "/Article/Definitions": 891
}

ML Intent Types

Informational

99.9%

Raw JSON

{
    "Informational": 999
}

Content Metadata

Language

Author

null

Publish Time

not set

Original Publish Time

2022-09-14 04:03:38 (3 years ago)

Republished

Word Count (Total)

1,805

Word Count (Content)

990

Links

External Links

Internal Links

Technical SEO

Meta Nofollow

Meta Noarchive

JS Rendered

Redirect Target

null

Performance

Download Time (ms)

1,402

TTFB (ms)

1,400

Download Size (bytes)

43,736

Shard

118 (laksa)

Root Hash

18411896536811451318

Unparsed URL

nz,sharesies!www,/learn/etf-exchange-traded-funds-explained s443