In my last post I mentioned using diversification to manage risk in the share market. A simple way of broadening investments is by using ETFs & ETCs. These are Exchange Traded Funds and Exchange Traded Commodities. Both ETFs & ETCs trade on the ASX so are very simple to acquire. Using ETFs you can gain access to a portfolio of the top Australian shares,  different sectors, and international markets.

ETCs work in much the same way, but let you track the performance of the major commodities.

Like with any investment there are risks in investing in these funds, and if you want to get the feel of how they perform and how you can best use them to in your own investment strategies; why not join our share game, in which you can now trade both ETCs & ETFs as well as ordinary shares.

Good luck and happy trading!