14/05/2026
How do ETFs work?
In most cases, ETF managers will buy a collection of stocks or other assets which broadly mimics a market index like the S&P 500 or a sector such as retail, and performs in line with it.
As investors, if you like the sound of this objective, you buy shares in this fund and this way you’ll have exposure to all the companies within the fund, without having to buy and own them individually.