Trustnet Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

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You are here:  FE Trustnet     Education        Exchange Traded Fund Guide

Exchange Traded Fund Guide

Value for money

ETFs offer transparency and openness.

No frills
Pure exposure to equities
A fund whose assets comprise equities in the ratios determined by an index, offers a simple and transparent means to equity ownership. Since the fund is identified by the relevant index the nature of the equities owned within the fund are self evident. So a country index will reflect the equities of the relevant country and a sector the direct holdings as indicated by the chosen benchmark.
This means that the ETF is an ETF is an efficient investment tool that offers a pre-specified outcome to its investor

Product development potential
ETFs are not burdened by the complications of elaborate investment strategies and the consequent fees structures. This means that the fund is an effective and low cost means to investment.
Accordingly product providers may want to use ETFs within their own new schemes that they establish to allow regular savings plans that meet the necessary criteria for ISAs or Pensions, with or without CAT marks.
The product provider would thereby simply be making a proposal to an investor on how to save/invest by offering administration services, when the actual process of equity investing is handled by the ETF.
Benefits of competitive arbitrage
As an ETF grows it provides units in itself to new investors. Most open ended funds do this by accepting cash for subscriptions; this does not happen with an ETF.
The critical feature of an ETF is that professional securities dealers facilitate the subscription process with a transfer of physical shares. To meet subscriber demand new units are created when the shares are transferred into the fund, so enlarging the assets of the ETF. The process is completely transparent since the constituents of the fund are known, the price of the fund is known as are the constituents.
The mechanism of arbitrage available to the professionals in creating new units and redeeming old units should continually correct the price to accurately reflect the underlying assets.

Institutional expertise available to all
The arbitrage activity and basket trading that it requires remains the preserve of institutional traders. Similarly the low cost of management charges levied against the ETF are usually only available to substantial investors who can create economies of scale for their managers.
However due to the ETF being available on an exchange and equally available to investors large and small, anyone can now participate in the benefits of such institutional expertise.
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