FP Markets has added ETF CFDs to its wide range of over 10,000+ products available to trade on the global markets. ETFs are a type of pooled investment security traded on a stock exchange in the same way that a regular stock can be traded.
Rather than holding only one underlying asset as you would with a stock, ETFs are a type of fund that holds multiple underlying assets. Unlike mutual funds, ETF share prices fluctuate throughout the day as the ETF is traded whereas mutual funds trade just once a day after the market closes.
What sort of ETF CFDs will be on offer?
FP Markets offers various ETFs that contain many types of investments, including stocks, commodities, bonds or a mixture of investment types. Stock ETFs include a selection of stocks to track a specific industry or entire sector. Bond ETFs, commonly known as Fixed Income ETFs, allow traders to invest in various fixed income securities like corporate bonds or treasuries. Industry or sector ETFs can either focus on a particular sector or industry. Commodity ETFs allow traders to invest in commodities such as crude oil or gold.
ETFs like these are important to investors because they allow a diverse investment portfolio, hold shares cheaper than the actual physical possession of the commodity and earn gains from stock declines by shorting stocks.
Some specific ETFs offered by FP Markets are:
- iShares MSCI ACWI ETF (ACWI.xnms)
- SPDR Bloomberg 1-3 Month T-Bill ETF (BIL.arcx)
- Vanguard Total Bond Market ETF (BND.xnms)
- SPDR Gold Shares ETF (GLD.arcx)
- iShares Core MSCI Emerging Mkts ETF (IEMG.arcx)
- Invesco QQQ Trust Series 1 ETF (QQQ.xnms)
- SPDR S&P 500 ETF (SPY.arcx) and many more
At FP Markets, investors can easily participate in ETF trading by buying or selling ETFs via either the FP Markets’ Mobile App or FP Markets website, where they will also have access to a wide variety of ETFs across sectors and markets, lower expense ratios, fewer broker commissions and a personal account manager.
Head of Europe, Middle-East and Africa, Craig Allison explained further: “By introducing ETFs to our electronic platform MT5, we strive to meet traders’ expectations by giving them access to a basket of assets designed to track an index with low management fees and higher intraday price visibility; a benefit which has been recognised by both individuals and institutions.”