Considering the total net new assets raised in Europe for the whole of 2014 was US$61.8bn (£40.2bn) and the “rollercoaster ride for investors” during September 2015, strong inflows suggest investors are looking for lower-cost ways to remain invested in the markets.

Typically, the aim of an exchange-traded fund is to replicate the returns of an underlying benchmark less fees.

This guide will explore the replication strategies adopted by this product; the impact of ‘Black Monday’ on ETFs; and how important taxation issues and charges should be when you recommend this vehicle.

Supporting material produced by: Christopher Mellor, head of equity product management at Source; Townsend Lansing, head of short/leveraged and FX platforms at ETF Securities; and Vivian Tung, vice president for product strategy and Global ETF product at Brown Brothers Harriman.