Invest in ETFs

An Exchange-traded Fund (ETF) is a ready-made basket of investments that you can buy and sell like a share. Instead of choosing lots of individual investments yourself, one ETF can give you access to hundreds or even thousands of securities (such as shares, bonds, funds).

When you buy an ETF, you're buying a slice of that portfolio rather than a single asset. Most ETFs aim to track the performance of a specific index (like the FTSE 100 or S&P 500), so their value rises or falls in line with the underlying investments.

ETFs come in several types, each tracking different assets or strategies. Common examples include equity (stocks), bond, commodity, index, active, and thematic ETFs (e.g AI or clean energy).

Each type varies in risk and purpose, so it's important to choose one that fits your goals.

ETF costs usually include a trading fee when you buy or sell (from £4.99 per trade with Aviva). There is also a platform fee of 0.35% (Aviva charge). In addition, some ETFs have an ongoing charge (OCF), which varies depending on the fund you choose.

Yes, many ETFs pay dividends if the assets they hold generate income. For example, equity ETFs that track dividend-paying companies will typically pass those payments on to investors.

ETFs usually offer two options:

• Distributing ETFs - Pay dividends out to investors as cash.
• Accumulating ETFs - Automatically reinvest dividends back into the fund to help grow your investment.

Whether you receive income or it's reinvested back into the fund will depend on the ETF you choose and your investment goals.