Focus Sections » OTHER FOCUS SECTIONS » EXCHANGE-TRADE PRODUCTS

Listed securities offer unique opportunities to diversify and hedge risk, if investors have the capability to consistently simulate asset behaviours across all markets.

Barclays Global Investors’ iShares brings the benefits of the exchange-traded fund – diversified exposure to numerous companies through a cheap and efficient single trade – to the bond market.

Despite the early resistance, this product, from Euronext.liffe, has rapidly taken off since its launch in 2001.

In an ideal world, investors would be able to take advantage of the current volatility of market indices, without the high costs of frequently buying and selling shares in their component companies.

The pace of development of London’s fledgling covered warrants market has attracted some comment recently. The advantages should appeal to sophisticated investors over the long term however.