A growing number of ordinary Australians are pouring billions of their savings into exchange-traded funds (ETFs), but what are they and what are the risks?

ETFs are an investment fund full of a basket of assets, like shares, bonds, or commodities, and are typically an affordable way to obtain a diversified share portfolio.

For example, the A200 ETF tracks the ASX200, Australia's largest 200 companies, in a single bundle so investors can spread their risk and diversify their investments, rather than betting on a singular stock.

They can also get access to overseas companies like Apple or Google. 

About 2.7 million Australians now own ETFs, which is up by 20 per cent in a year, and have invested $300 billion. Women make up nearly 680,000 of ETF holders.

Phillip Vassallo is one of those

See Full Page