In this volatile market, exchange traded funds (ETFs) are getting a chance to prove that their benefits are for real.

Australian financial planners have become fearful of direct shares investment because of near corporate collapses. As a result, they’re moving their money into ETFs, reports Vishal Teckchandani for Investor Daily.

The global credit crisis has revealed companies with massive debts both internationally and in the United States. Share values of particular firms have nosedived up to 85%, making for a volatile market environment. ETFs are proving their worth to investors and financial planners as they provide easy diversification and asset allocation.

This type of diversification is also protection in a sense, and can offer investors exposure to many companies in one low-cost investment.

Tags: Australia