ETFs Explained: The Tracker Funds That Took Over the Market

If investing were cooking, exchange-traded funds (ETFs) would be the ready meals of the market. Pre-packaged, neatly labelled, and promising a balanced mix of ingredients – all you have to do is pop one in your portfolio. They’re sold as cheap, transparent, and convenient. And much like that supermarket lasagne, they usually deliver exactly what’s on the label.

What most investors don’t see is the fine print on the back: the legal structure, the custody arrangements, and the market mechanics that keep prices in line. ETFs may look simple, but their shelf life depends on some surprisingly complex ingredients.