ETFs offer investors a number of advantages

ETFs enable you to gain exposure to a diversified portfolio of securities and different asset classes. This broad investment exposure helps you to avoid concentration risk which can occur when you don’t diversify across and within asset classes.

Like shares, ETFs give you the flexibility to buy or sell at any time during market hours. The listed nature of an ETF provides you with liquidity so you can quickly respond to changes in market conditions.

ETFs also give you a high level of transparency as a full list of the underlying holdings is provided to the market each day. This allows you to see the exact nature of the underlying exposure, so that you can easily use the ETF to complement other investments in your portfolio.

ETFs are a cost effective way to gain exposure to a diversified portfolio of securities. They are generally less expensive than purchasing a large number of individual shares or investing in an actively managed fund.

ETFs generally have a lower level of portfolio turnover than actively managed funds, and are therefore more tax efficient investments over the long term. Also, trading in and out of ETFs doesn't increase portfolio turnover within the ETF and this helps to keep them tax efficient.