ETFs Funds And Shares What Are They And What Are Their Benefits

Exchange Traded Funds, better known by many investors as iShares, the brand owned by Barclays Global Investors ('BGI') have been around in the UK since April 2000, with the launch of the iFTSE100 on the London Stock Exchange. From a slow start, by the end of 2005 (the latest figures available), some 125 billion was held in assets under management. Generally, when you look for your share price information, you'll find them grouped in the extra MARK section, where you'll now find some 45 different ETFs on offer. Although they have been around for sometime, let's just remind ourselves how ETFs work. They are listed on the stock exchange, providing the flexibility and trade ability of a share, including the fact that the price is continuously quoted, but that one share can provide instant exposure to an entire Index, giving you the diversification benefits of a fund. ETFs are also a flexible way of achieving cost-effective market exposure. Because the funds are registered in Ireland, there is no stamp duty to be paid on purchases. Management costs are taken from dividends that are accrued by the fund, and any excess income is then distributed to shareholders: unlike unit trusts, there are no initial fees to pay on the original purchase. The price of the fund is always close to the 'Net Asset Value' (NAV) of the underlying investments and will usually have tight spreads, unlike some unit trusts and some investment trusts. Also ETFs will disclose their holdings everyday, whereas traditional funds usually disclose their holdings twice a year.

What can I invest in?

ETFs offer a wide range of opportunities for investment with varying levels of risk: as at mid-December there were 45 different markets/indices to invest in, ranging from corporate bonds to the Taiwanese market. Starting at the lower end of the risk spectrum there are several corporate bond ETFs, as well as some Gilt-based investments. Moving on to the medium risk level, you can choose from global funds to ones that are more specific to individual regions, such as the US or Asia. There's also the option of investing in individual indices: 'index trackers' are available for the UK's FTSE100 and 250 Indexes, the US S&P 500, or Europe's Euro first 100 & 80, spanning the top European companies. For those wanting a higher level of risk, there are also ETFs which will give you exposure to emerging markets, such as Turkey, Korea, Taiwan and Eastern Europe. ETFs don't offer the same wide variety as unit trusts, but for investing in the countries and sectors they do cover, their charging structure and trade ability make up for this. As such, they provide a good, low cost, easily-traded route into the market, with the flexibility to move up the risk ladder as your experience and capital grows.

Finally, if you've an appetite for an even spicier approach, the London Stock Exchange also enables you to invest in commodities, through ETCs (Exchange Traded Commodities). Although like ETFs they are traded in the same way as shares, and are eligible to be held in a PEP or ISA, they do work in a completely different way. Whereas ETFs actually buy the underlying investments, ETC managers don't buy and store tons of wheat and copper, stack-up barrels of oil, or herd livestock into pens. Rather, they buy options on these commodities. As a result, ETCs are classed as more 'complex' investments by the FSA and you'll need to complete a special 'risk notice' confirming you understand the additional risks of investing in them. So take a fresh look at ETFs - you might just find they offer you more than you thought!

Funds: take your pick of the best

Unit Trusts and Open Ended Investment Companies (OEICs) are investments that let you pool your money with lots of other 'retail' investors. This money is invested on your behalf by a wide range of specialist fund managers, investing in, for example, Government gilts and bonds, commercial property and equities. Investing in funds gives you access to a highly-diversified range of investments at a reasonable cost. You will also have easy access to asset classes and international markets that would otherwise be difficult and expensive to invest in and benefit from the Fund Manager's contacts, knowledge, experience and expertise. Funds come in many shapes and sizes from 'trackers' to specialist or 'themed' funds.

An index-tracking fund (often referred to as a 'passively managed fund') aims to match or 'track' the performance of a given market index, such as the FTSE All Share or the FTSE 100. They do this using computer programs to work out how much of each individual company they need to buy and sell to mimic the performance of the Index as a whole. But not all 'tracker funds' match the Index they are tracking that well - so be sure to check their record. An 'actively managed fund' on the other hand employs researchers to study and engage with companies in which they plan to invest, and to keep abreast of the prospects for companies in which they already invest. They'll compare their performance to a 'benchmark' index related to the investment objectives of their fund, with the expectation that the extra work they put into tracking down the 'best' investments will literally pay dividends through higher growth than that of their benchmark.

Choosing your funds

When you pick your funds, be sure to rate them against other funds that fish in the same waters. Don't expect a 'value' fund and a 'growth' fund to have similar track records. Only by comparing funds with their true peers will you make a good choice. Whilst past performance should not be seen as an indication of future performance, past performance does matter when comparing like with like. Chasing winners however, is as dangerous as day-trading. Not surprisingly, all five of the top-performing funds at the end of 1999 were technology sector funds. Sector funds have a place in many a portfolio, but for the majority of investors they belong at its edges, not at its heart. An individual fund will give you a wider spread of underlying investments: by investing across a number of funds you're better able to smooth out the ups and downs of the market overall. But that won't work if it turns out that your funds hold virtually the same investments. So have a look at each fund report to see their top holdings and make sure you've got a good spread overall.

Individual Company shares

When it comes to the individual shares part of the investment model, the lowest risk entry point has always been recognised as companies in the FTSE 100. However, you should always bear in mind that the Index evolves over a period of time, changing its overall make-up. Consider, for example, that over the last 6 years technology shares have fallen out of the Index, while mining companies, on the back of booming commodity prices, have dramatically increased their presence. Yet, because of the volatility and cyclical nature of the sector, individual mining groups can't be classed as low risk. Other 'big names' have gone from the Index due to take-over activity - companies like P&O, Abbey National & BAA - all of which have to be replaced.

Today, some 80% of the make-up of the overall value of the FTSE100 comes from just 5 sectors - Banking, Mining, Oil & Gas, Pharmaceuticals, and Telecoms (fixed and mobile). So, if you're looking to the Footsie to form the bedrock of your investment in individual shares, where should you start? Companies involved in essential, everyday products and services, such as the water and electricity utilities and broad-based retailers often provide a solid backbone to any share portfolio. You could argue, however, that the classic 'defensive' nature of utilities has recently been undermined by the number of take-overs within the sector. The share prices of the remaining companies have climbed to all-time highs, potentially increasing the level of risk.

There is without doubt an appetite for the assured cash flow that utilities provide, and it's fair to say that a growing number of analysts agree it's hard to justify the current prices. Despite this, get your timing right, buying at the right price, and these sectors should still provide a strong base on which to build your individual holdings. To extend your scope, whilst still staying within a lower risk profile, your next ports of call should be into the banks, pharmaceuticals, tobacco and beverages sectors.

Move on up to the intermediate, 'medium risk' level, and you've an increasing choice, including the remaining FTSE100 companies, dominated by the mining sector. The majority of shares in the FTSE250 would also fit into this 'medium risk' category. Still relatively large companies, it is these shares that have seen some of the biggest gains over the last 3 years, helping push the 250 Index to record levels in 2006. One noticeable difference between the FTSE250 compared to the FTSE100, is that companies here generally have less international exposure. When it comes to the consideration of risk, you can play this one of two ways: some argue that having the majority of profits coming from the UK provides for less risk, while others (including us) favour having fingers in as many regions as possible.

Finally, at the higher end of the risk scale you find smaller companies and AIM quoted shares. These tend to be more volatile and less liquid than their larger cousins, factors that generally lead to wider bid/offer spreads. The AIM market has seen considerable growth over the last 10 years, partly because companies don't have to comply with the same stringent requirements of the main market.

Often, private investors don't get a look-in as part of the flotation, having to wait until the shares start trading, so do pick your time and use stop-loss limits - that early flush of success isn't always carried through. One of the fastest growing sub-sectors within AIM is small mining and exploration groups, many of which are based abroad but have chosen to list in the UK. Because their prospects include a significant amount of 'hope' value, such companies will represent the very highest level of risk. Equally classified as higher-risk, though as a result of different factors, are shares in overseas companies.

Household names like Volvo, Coca Cola and Johnson & Johnson are big names and big companies. The additional risk they bring for investors comes from the fact that the majority of their earnings are from overseas. So you face the added risk of changes in exchange rates. Over recent months, for example, the fall in the US$ would have had a big impact on the sterling value of dividends from US shares And when the companies you invest in are smaller ones, it's often harder to find reliable research and analysis, harder to track and compare performance, and harder to follow the news that affects the share price. True, most big UK names also trade globally, but as 'home market' companies they are well-researched, much commented upon and regularly feature in the UK business finance pages. That's not to say you shouldn't venture outside these shores - far from it - but you need to do so with your eyes open. That's why we see overseas shares as being more appropriate for investors asthey move up the experience ladder and once they've built a balanced portfolio. And it's also why, in general, we'd advise investing in market trackers and funds before moving into individual overseas shares.

Different Methods To Promote Online

Most People who Blog and Ping only use 1 Method to promote there online Home Based Business. Many of my coaching clients are coaches themselves, and quite a few of them have asked me how to promote their business online. There are a number of great ways to promote your online business.

Internet is the biggest benefits to promote your business. Whether you want to promote a new book, your services, or a website, an online press release can introduce the web-based world to you and what you have to offer. What product do you have to promote - This is the finished goods or product you have on hand to promote or market.

In an attempt to be able to meet the ever growing demand for prompt delivery of goods and products, it is then important for you as an online marketer to know the best online marketing and promotional skills in doing business on the internet. Blog and ping is probably the most popular way that people use Blogs to Market their online Business.

An online media kit is a must for book authors. To make money online, You must get traffic to your site. Once you do get that traffic to your site, here?s a few ideas to keep them there and to encourage them to visit again and again.

One of the first things you need to do is look at who your ideal customer or client is and who you want to attract to your site. Once the contest is ready, it is time to promote the contest to everyone you know. Finally, it is time to put the contest to work by designing the necessary web pages and forms (if applicable).

By trying to attract opportunity seekers to your business, what you are most likely doing is attracting people who are looking for a ?JOB?. There is a phenomenal amount of different ways to promote your business offline that I haven`t covered.

Once you find a business you would like to cross promote with simply e-mail them your proposal. You can find businesses to cross promote all over the Internet. Another effective way to promote your website is to write articles or free reports for ezine publishers and webmasters to use.

Remember in promoting your best online affiliate program that the currency of the net is information and most of this information comes in the form of articles. The best, most powerful and effective way of promoting any online affiliate program is with the use of free articles carrying your affiliate link in the resource box.

Some magazines and newspapers will accept articles from the public, and in exchange they will give you an ad space for either free or at a discounted rate. Printed Balloons- Everyone loves balloons, young and old alike, get a thousand printed up with your web site address on, give them out at party?s, send them as gifts in with your packages, put them on your car if you want to.

If you don't start your Internet Marketing plan, you could be this time next year with the same disappointing level of sales. Tsuyoshi E. Suzuki helps small business owners take action to grow their business. If you want to find out free online marketing method, make sure you click resource box below.

Differences Between Online and Offline Business

Online marketing is a billion dollar industry that is fast overtaking the traditional means of advertising. Online marketing, (also known as web marketing, search engine marketing, SEO or internet marketing) is vital in today's internet savvy world. It has been proven to be the most cost effective investment in capturing targeted product enquiries and online sales, resulting in a growth for your bottom line and your business. It helps you to promote your business and is extremely cost effective and measurable. Differences Between Online & Offline Business

Business

Internet marketing is associated with several business models. More and more flea market sellers are putting their items up for sale online and running their business out of their homes. For both companies and consumers that participate in online business, security concerns are very important. The main models include business-to-business (B2B) and business-to-consumer (B2C). Are only experienced in some areas of online marketing and will sell you this whether its right for your business or not. Most companies will promise you the world to get your business. It allows people to stay in touch, information to be found quickly, and businesses to reach potential clients all on a much more cost effective basis than ever before.

Media

The Internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience. The interactive nature of Internet media, both in terms of instant response, and in eliciting response at all, are both unique qualities of Internet marketing. Internet marketing is the process of growing and promoting an organization using online media. Compared to traditional media, such as print, radio and TV, Internet marketing can have a relatively low cost of entry.

Strategy

Internet marketing strategy includes all aspects of online advertising products, services, and websites, including search engine marketing, public relations, social media, market research, email marketing, and direct sales. But what most companies overlook is that before you do any form of web marketing you need to have a clear out that will work for your particular business, in your particular industry. Do not focus first on understanding your business and creating the correct marketing strategy, instead they blast away with your dollars and hope for the best. A well thought through this system strategy demands thorough understanding of the internet. Online marketing website providing simple easy to understand tactics and information on how to implement a successful online marketing strategy for your website. Due to the increase number of search engine users it is advisable to have an impelling Online Marketing strategy to make a good business.

Conclusion

Online marketing has been proven to be the most cost effective investment in capturing targeted product enquiries and online sales, resulting in a growth for your bottom line and your business. Online marketing is helps you to promote your business on the Internet and eMarketer provides the information marketers need to keep up-to-date with trends and developments in online marketing and emerging media. Therefore, the website owner could make use of the many online marketing companies.

Convert Traffic to Subscribers Dont Let Them Get Away

Everyone has been surfing the net at some point, jumping from page to page aimlessly, and couldn?t remember where they were ten pages ago. Unfortunately, if that site ten pages ago did not get your email address they just lost a potential customer. It is a fact that if a person leaves your site without becoming a subscriber, they will probably never return. Most people behave rather impulsively on the Internet, it is all about what catches our attention at the moment, so we can easily forget where we were only a few pages before. When we surf the net we become like little kids with about 5 minute attention spans, following where ever our interest takes us at that exact moment.

You can have a thousand visitors a day to your site. Your traffic could be a steady stream of people, but if none of them stop and subscribe then all you have is a lot ?go sees? but nothing of substance. The amount of potential revenue lost would be staggering, can your business afford to lose those potential clients? By collecting a fraction of those emails you could be investing in the future of your business.

It is a common consensus that unique content will lure traffic back to your site. It is true that you should create a eye catching, unique site that your visitors will enjoy visiting and want to look at again, however it is not the one and only solution for you. To keep your visitors coming back, and not placing your site on the back burner of their mind, you will want to convert your traffic into subscribers.

A simple opt-in to your mailing list will gather your visitors emails so that they can be added to your mailing list. By filling out the opt-in form your visitors are agreeing to receive emails from you, and are agreeing to keep updated on what is going on with your site.

By collecting subscribers you are making it possible to follow up with them through emails, this will keep them from forgetting about your business. You will be able to endorse another offer to him or her, or get them to consider another offer. With a little salesmanship you can get a long way through emails, so you can see why gathering subscribers, and not letting them drive on by is so important to your business.

Business Planning Basics

Business planning is an important factor when you are launching your small business startup or online business, and you need to make sure you have documented your ideas thoroughly and objectively for each area. From financial projections to summaries and overviews, an effective business plan will help you and potential investors determine how valuable the business idea truly is.

Most people make the mistake of thinking they don't need a business plan for an online business or startup; they think they can just launch first, and then put the pieces together as they move ahead. However, this can be a costly strategy and puts you at risk for some big mistakes. Business planning will help you organize your goals and keep you on track towards success. Here are some basic do's and don'ts for business planning:

Do write up the business plan summaries before filling out each area. The summary can serve as a basic guide, and can always be changed later if needed. You'll need to write up the general idea of what the section is about so you have a simple outline before getting into the details.

Don't analyze trends too early. While it's a good idea to do some market research and learn about your customers, determining market potential too early on can lead to poor decisions. Effective business planning requires that you find only the information that supports your ideas at this present moment, and then using solid financial projections for forecasting at a later date.

Do outline a marketing budget and plan. Your marketing plan doesn't have to be complex to be effective, and there are many ways you can work on promoting your business and developing a strong customer base. Make a list of at least 5-8 marketing objectives and strategies so that you can coordinate your marketing plan immediately from the startup of your business.

Don't share your business planning strategy or ideas with too many people. You want to make sure that your plans and information remain confidential until you are prepared to launch. Sharing your ideas with too many people can easily make you lose out on a great business opportunity.

Do include sales strategies and marketing tools you want to use. This will help you narrow down which approaches might be most effective for your business as you start out, and you can always build upon them as the business grows. Having these ideas in writing will help you keep track of your objectives with ease.

Don't include your background research or additional ideas within the final plan. Business planning does require some strategic reporting, and you don't have to 'publish' all of your research in the final plans. Take the time to weed out what is most important for you as you get going, and organize the plan as if you were going to be presenting it to a board for review. This will help you filter out what is necessary for the beginning phases of your small business startup, and what can wait for additional review at a later date.

Effective business planning takes time, patience, and strong research and organization skills but the effort is well worth it. Following some business planning basics is all you need to get started, and you can work on building up your plan with ease as the business grows.