ETFs work best if you buy in bad times and sell in good

They work as 'plays' on economy, but their rise is not always correlated to economic growth

The idea of exchange-traded funds (ETFs) is well established and many advisers recommend using them as a simple way to create a diversified portfolio of major stocks.

In its original concept, an ETF is a basket of shares that mimics a given stock index.

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A version of this article appeared in the print edition of The Sunday Times on February 23, 2020, with the headline 'ETFs work best if you buy in bad times and sell in good'. Print Edition | Subscribe