Exchange Traded Funds

The flexibility of a share with the diversification of a fund

Designed to track the performance of a benchmark like the FTSE 100 or S&P 500, Exchange Traded Funds (ETFs), combine the benefits of a fund (instant diversification and access to a whole market or sector) with the benefits of a share (flexibility, continuous pricing, ease of access and continuous dealing during market hours) making them simple, flexible and transparent additions to your portfolio.

Why exchange traded funds?

ETFs can be simple, transparent and flexible additions to a balanced portfolio.

• Simple – bought and sold just like stocks, they are highly liquid and easy to trade.
• Transparent – the components of the ETF are fully visible to you the investor.
• Flexible - trade in global markets and assets that are normally difficult to access.
• Diversification – access a whole country index through a single share.
• Low cost –as ETFs trade like stocks, standard commission rates apply (from £6.95 - £12.95 per online trade). There is no Initial Service Charge (ISC) and low Annual Management Charges (AMC) normally apply (see the ETF factsheet for further information).
• No stamp duty - tax treatment depends on your individual circumstances.
  
  

ETF risk warning and important information

Although ETFs are in general simple, transparent and low cost there are a number of features you should consider before investing.

ETFs are traded like shares and may not be for everyone. They closely track the performance of an index and as such their value can go down as well as up and you may get back less than you invested. If you are in any doubt as to their suitability, please seek independent financial advice.

Counterparty risk – while most ETFs do not use leverage and achieve their objectives by purchasing a diversified pool of assets, for example the individual stocks that make up the FTSE 100, some achieve their objectives through the use of derivatives, typically swaps, which carry counterparty risk. If the counterparty (issuer of the derivatives) does not pay the sums due, the investor will see a reduced return regardless of the performance of the underlying assets.

A number of ETF issuers seek to mitigate the counterparty risk by posting collateral, that is, setting aside a pool of assets that the investor can claim on in the event of the issuer’s default.  In these instances, attention should be paid to the quality of the collateral to establish whether it would continue to hold its value were the issuer to default.

Leveraged and Short ETFs – products that offer leverage (where gains or losses can be magnified), or that are designed to perform inversely to their underlying index or benchmark, are highly complex financial instruments that carry significant risks. Please ensure you understand these before making an investment decision.

Taxation – you should be aware that the majority of ETFs are Offshore Funds and as such specific taxation rules apply for investors subject or potentially subject to UK tax.

For further information please refer to the ETFs Important Information page using the button below.

ETF issuers

iShares are the world’s leading exchange traded funds. There are over 400 iShares available worldwide with more than 85 traded through the London Stock Exchange and available to trade and hold through a Barclays Stockbrokers , or .  

Other issuers who offer London list ETFs include db x-trackers (Deutsche Bank), ETF Securities, Invesco PowerShares, Lyxor ETF and HSBC.

• Find out more about these issuers

Barclays Wealth Global Markets funds

Interested in ETFs, but do not want to pick and manage individual ETFs yourself? Barclays Wealth Global Markets funds offer five globally diversified portfolios of Exchange Traded Funds (ETFs) which are designed to meet a range of risk-return preferences .

• Find out more about Barclays Wealth Global Markets funds

London listed iShares

By accessing this section of the website and reviewing the list of London listed iShares, you are confirming that you are a UK resident investor. If you are not a UK resident investor, you should not access this section of the website

 

How to invest

Trading exchange traded funds could not be easier, simply log into your , or .

Looking for a list of ETFs?

For a list of ETFs from each of the issuers go to the "Market News and Data" tab and enter the issuer’s name. For example enter “iShares” in the search box for a complete list of iShares ETFs, enter ‘x-trackers’ for Deutsche Bank or for Lyxor ETFs, enter ‘Lyxor’.

For detailed information including historical pricing, charts and trade volumes click on the name of the ETF.

Want to trade?

Select the Deal tab and enter the epic code for the ETF you want to trade. Remember you can also set limits, stops and trailing stop orders for GBP ETFs to help you manage your ETF investments more effectively.

Trade with the best

New to Barclays Stockbrokers? and you could be investing tomorrow, alternatively call our team of expert advisors on 0845 601 7788* who can help pick the account that is right for you.

The information in this section of the website is intended for UK resident investors and the investments to which such information relates are only suitable for, and will only be sold to, investors in the UK. Access to information displayed in this section of the internet site may be restricted in certain countries. Barclays Stockbrokers does not intend information concerning the products in this section of the website to be shown to any persons who are prohibited from seeing such information by their country of residence or incorporation (as applicable). If you are not a UK resident investor, you should not access this section of the website.

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