Why should I invest in ETFs and index funds?

ETFs and indexed funds are cost-effective, transparent and liquid and are therefore especially suited to private investors wishing to build up their assets over the long term. Both aim to replicate a market index, such as the SMI, as closely as possible. By choosing ETFs or index funds, investors are not taking on large risks as they will always gain and lose about the same amount as the markets. This is a sensible approach as even professional investors, such as banks or fund managers, rarely manage to consistently outperform the market.