STOCK EXCHANGES AND MARKETS

ETF: Exchange-traded funds

It is now possible to invest in the latest trends with exchange-traded funds.

SEARCH FOR ETF

A COMBINATION

of funds and shares

IN YOUR ONLINE BANKING YOU WILL FIND

a wide range of ETFs

TOOLS AT YOUR DISPOSAL

ideas, graphs and listings

ETF: listed investment funds

ETFs are investment funds listed on stock exchanges. In other words, just like shares, they can be bought and sold on the stock exchange at the listed price, while investing in different assets (shares, bonds and others) such as investment funds.

An ETF's investment objective is to replicate the composition and behaviour of a certain index (by sectors, commodities etc.) or securities portfolios, for example, equity indexes (Ibex 35, EuroStoxx 50, Nasdaq 100 etc.) or fixed-income indexes. This makes it a very popular product for investing in tendencies or themes, since once the assets in a tendency have been grouped on an index, the ETFs replicate their behaviour.

ETFs enable investors to:

Invest in tendencies or themes, with no need to select the companies to be invested in.
Invest in the short/medium/long term, depending on their investment strategy.
Diversify the portfolio by geographies and sectors.
Buy and sell stakes at the listed price.

What is the process for finding ETFs?

With a wide range of ETFs from a large number of national and foreign investment managers, you can find the ETFs that interest you.

A fully digital process

Go to your private area and go to the “Savings and Investment” menu, where you will find the products and all the free information and digital tools you need.

Possibility of investing in themes

Using an ETF it is possible to invest in indexes such as the IBEX or Nasdaq, or specific theme areas such as: biotechnology, artificial intelligence, gold etc.

Buy and sell stakes at the listed price at any time

ETFs work in the same way as on the stock market, i.e. stakes can be bought and sold at the listed price. You can access any operations and information you may need. Go here to take a look at the rates.

If you are not a customer, become a customer here and you can access all these digital tools. You can also use any of our branches to access the operations and obtain more information.

What are the risks of using ETFs for investment?

Investing in ETFs means undertaking a certain level of risk that will depend on the composition of the ETF, market fluctuations and other factors associated with investing in securities. ETFs involve certain risks (market, credit, liquidity, currency, interest rate, sustainability risk etc.), and therefore some or all of the investment may be lost. The risks are detailed in the ETFs Prospectus and Key Information Document (KIID).

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FAQs about ETFs

What are ETFs or exchange-traded funds?
ETFs are investment products with the characteristics of investment funds, and they are also listed on stock exchanges like shares. This means that, although they are not shares, they can be bought and sold on the exchange at the listed price.

The specific feature of an ETF is that its investment objective is to replicate the composition and behaviour of a certain index (by sectors, categories etc.) or securities portfolios, for example, equity indexes (Ibex 35, EuroStoxx 50, Nasdaq 100 etc.) or fixed-income indexes.

Like traditional funds, exchange-traded funds are invested in a wide range of assets. This provides access to some assets which are not available directly, such as indexes, commodities or emerging markets. However, unlike traditional funds, exchange-traded funds allow investors to operate in the same way as other listed assets: stakes in an ETF can be bought and sold at the price they fetch on the market, instead of subscribing or paying up a stake in an asset value calculated before or after the session.

How are ETFs managed?
ETFs are administered by a management company which takes investment or divestment decisions on different assets such as shares, bonds, derivatives etc. in order to comply with the fund's investment policy. All the information on the composition of the ETF and how it will be invested is described in the fund's information prospectus.

Useful information

Before taking any investment decision, investors must consult the information in the financial instrument's legal documentation (in the case of a Collective Investment Undertaking (CIU), in the Prospectus and in the Key Investor Information Document (KIID), available both from the relevant supervisory body and from the market where the instrument may be admitted to trading, if any, and on the website of the issuer or the management company. The decision to invest in a financial instrument must be taken in due consideration of all the characteristics or objectives of the financial instrument described in its legal documentation. Past performance is not a reliable indicator of future results, and if the financial instrument is denominated in currencies other than the euro, performance may go up or down as a result of currency changes.

The opinions expressed in investment and analysis reports reflect the personal opinions of the analysis teams producing them at the time of issuance, and they may be amended. Provision of such information does not constitute the provision of an investment advisory service. Under no circumstances may this information be used or considered as an offer to sell or an offer to buy. Any investment decision by the recipient of this information must be taken in due consideration of the legal documentation for the financial instrument concerned.

This is an informative communication. It is not a contractual information, neither a legal requirement or commercial information, nor should it be treated as a recommendation to invest or any form of advice, and it is not sufficient in itself as the basis for a decision to invest.