• Economy

How can I use Trackers to invest in the stock market?

Bertrand Alfandari
Bertrand Alfandari
Head of ETF development

Trackers are investment products that replicate the performance of financial markets. Today they play a growing role in investors’ portfolios. BNP Paribas Asset Management produced a series of informational videos to help you understand these products.

What is a Tracker or ETF?

We use the terms Tracker or Exchange Traded Fund (ETF) to refer to a listed investment product that replicates the performance of a stock index, like the CAC40 or other European and international indexes. A Tracker allows investors to track and benefit from an index’s performance without having to execute buy and arbitrage operations for every stock in the index. 

In other words, Trackers make it possible to invest in an entire stock index at once with no need to buy every share covered by the index. Trackers may contain stocks, bonds or commodities and enable individuals to invest in markets that are typically harder to access. 

The Tracker boom* :

200 

More than 200 financial management companies worldwide offer Trackers

25 years

The first Tracker was launched 25 years ago

4 000 

Over four trillion dollars in global assets invested in Trackers today

An investment vehicle that is easy to understand and use

Trackers quickly became a massive hit with institutional investors, first in the United States and later in Europe. Now individual investors are paying more attention to the funds, especially in the United States, where individual investors hold over half of these assets. The trend is gaining ground in Europe and France—in Europe, total assets invested in ETFs increased five hold in less than 10 years*.

The simplicity offered by these products largely accounts for this widespread enthusiasm. Trackers are indeed both easy to understand (replicating a market index that is familiar to the general public, such as the CAC40 or NASDAQ) and easy to use (they are continuously listed on the market, while investors submit orders just like they do for stocks). 

Par ailleurs, le Tracker est un excellent outil de diversification liquide, transparent et dont les frais de gestion annuels se montrent relativement peu élevés

Moreover, Trackers are an excellent tool for liquid and transparent diversification, with low annual management fees

Making informed investment decisions

To help you understand all the specifics and opportunities offered by Trackers/ETFs, BNP Paribas Asset Management offers you a series of informational videos. 

* Source: ETFGI as of late October 2017

BNP Paribas Easy

www.easy.bnpparibas.fr

BNP Paribas Easy is BNP Paribas Asset Management’ range of ETFs and index funds.It gives institutional and retail investors exposure to the main asset classes in the main geographical regions and allows them to diversify their portfolios with innovative themes such as real estate and the environment.

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