This level assumes you know what an ETF is and want to look more closely. Here we explain what a fund really costs you, how to read the documents every provider publishes, and how the most widely known indexes differ from one another. The ongoing costs, usually shown as the TER, are important, but they are only one fact among several.
A useful order is costs first, then the factsheet, then the pages about the individual indexes, so that you can put facts side by side instead of relying on a single number. Each guide explains the term it uses and names its sources where it quotes figures. Everything on this page is for education: the figures are illustrations, not forecasts, and nothing here is advice. When you are ready for history and index mechanics, the Advanced level follows below.
Costs and documents
What does an ETF really cost?
Read more about the ongoing costs (TER) and other expenses that affect your return over time. We explain exactly what to look out for.
How to read a factsheet
Every provider publishes a document containing the most important details of a fund. Here you can see how to use this information.
Funds and indexes
ETFs
An overview of the characteristics of various funds. This allows you to put the facts side by side.
You can find more specific information on the pages about the FTSE Global All-Cap, the FTSE All-World, the MSCI World, the S&P 500 and the All-World High Dividend indexes.
How your investments are held
Custody and nominee accounts
What custody means, how segregation works and where the compensation schemes apply.
Currency risk in USD funds
Why a euro listing does not remove dollar exposure, and what hedging does and does not do.
Documents, costs and fund types
What is a KID?
What the key information document shows about risk, costs and the holding period.
Tracking difference vs tracking error
Two measures of how closely a fund follows its index, and why they are not the same.
Accumulating vs distributing ETFs
How the two share classes of one fund treat dividends.
One step further
Ready to learn more? Go to the Advanced page.
Back to basics
Do you want to review the foundational concepts? Read the Beginner page.