In this episode of the Maya on Money podcast, we delve into the world of exchange-traded funds (ETFs) with expert guest Niki Giles, head of strategy at Prescient Fund Services. As the popularity of ETFs continues to rise, we discuss the fundamentals of ETFs, their benefits, and how to get started investing.
We begin by explaining what ETFs are and how they differ from traditional unit trusts, highlighting their low cost and accessibility, which have democratised investing for many. The conversation also covers the evolution of ETFs from passive index-tracking funds to actively managed funds, examining the implications for investors in terms of fees and performance.
Key topics discussed include:
- The basics of exchange-traded funds and their advantages for new investors
- The difference between passive and actively managed ETFs
- Cost considerations and how they compare to traditional unit trusts
- Strategies for choosing the right ETFs for your investment goals
- The importance of diversification and long-term investing
This episode is a valuable resource for anyone looking to navigate the ETF landscape, providing insights and practical tips for making informed investment decisions. Tune in to learn how you can start your investment journey with as little as R100 and harness the power of compounding for your financial future.