Organic Investments


Should Investors Fear the Rise of the ETF?

The Exchange Traded Fund, unsurprisingly has seen its name simplified by Wall Street to its more common abbreviated title as the ETF. So what is an ETF and why has it attracted over a trillion dollars in investor’s capital? An ETF is a financial instrument in which its sole purpose is to track the performance of an underlying benchmark. Such benchmarks may be a stock index, asset class, geographical region or investment strategy. An ETF is not designed to outperform the benchmark but rather replicate its performance as close as possible. Similar to a common stock, the price of an ETF fluctuates and can be traded throughout the day on an exchange. So why has this financial instrument gained

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