Sometimes, jargon used in the financial world can be difficult to navigate.
Following are some explanations of some of the terms you may have come across
on our website.

EFT

EFT stands for Exchange-Traded Fund.

It is effectively a basket of securities that trades on an exchange just like a stock does and can be purchased or sold on a stock exchange. ETFs can contain all types of investments, including stocks, commodities, or bonds; some are Australian-only holdings, while others are international. ETF's offer low expense ratios and fewer broker commissions than buying the stocks individually.

The first ETF was the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index, and which remains an actively traded ETF today.

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SMA

SMA stands for Separately Managed Account.

It is a portfolio of assets managed by a professional investment firm. SMA's are increasingly targeted toward wealthy retail investors. An SMA provides access to a professional manager and its research capability with the benefits of direct share ownership. Unlike a managed fund, each client is able to see exactly what investments are in their portfolio.

SMAs offer more customization in investment strategy, portfolio management, approach and management style than other funds.

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