As more young professionals look beyond property to get ahead faster and build wealth, exchange traded funds offer a sweet start to the world of investing. 

It seems like everyone is talking about the benefit of investing in ETF’s right now and I’m about to cover some of the reasons why. 

But firstly, what exactly is an exchange traded fund (ETF)? 

An ETF is effectively a bundle of shares, similar to a traditional managed fund, that is traded on the ASX – or other international share markets – just like individual shares are. They are typically a bundle of companies, based on a market index of some of the largest companies, based on those companies' overall size.

The first Australian ETF listed on the ASX in 2001 and since then, investors have gone on to put almost $100 billion into the Australian ETF market which has grown significantly to cater for investors of all stripes. 

Here’s why investing in ETFs is a great option for beginners:

Affordability

Because ETFs follow an index investing strategy where they aim to replicate the success of a particular benchmark index, such as the ASX50 ETF offered by State Street, they don’t attract the transaction costs of someone buying and selling each individual share.

Opportunity

ETFs offer a quick and easy way to get access to a range of investment strategies, asset classes and geographic regions. There is a large range of ETFs to choose from. At Rev Invest we have constructed five portfolios, offering something for every investor. 

The Rev portfolios use a blend of ETFs (and in some cases managed funds) to deliver these portfolios. Our range is spread across different risk levels, for investors seeking more conservative (Springboard) options through to those fully invested in shares.

Liquidity

ETFs are traded on the Australian Securities Exchange (ASX) and can be bought and sold during the trading day. Investing in a Rev Invest portfolio means you can benefit added diversification in addition to the diversification in a single ETF, you also have the peace of mind of being able to access your money quickly, when you need it. 

Simplicity & Security

If you don’t have hours or days to spend pouring over information to buy and sell your own shares, ETF’s are a great way to access the benefits of diversification without the hard work of trying to pick specific companies. 

At Rev Invest, a proven investment team with 21 years experience manages the portfolios for you, so you don’t have to worry about whether you should be in this ETF or that ETF on a given day. 

So now you know why Australian investors love investing in ETFs and why we love managing our ETF portfolios at Rev Invest to deliver long-term returns for our investors.

How to get started

Rev Invest is the perfect way to start investing in ETFs, with your choice of in five tailored managed portfolios to help you get ahead faster. 

Set up your account in minutes and start investing with as little as $5000 today!