Three to consider for low-cost, safe entry into ETF investments

David Gow, financial planner at Acumen in Edinburgh, uses global property, hedge fund and private equity ETFs. He highlights three in particular:

"Deutsche Bank's X-Tracker LPX MM Private Equity ETF gives investors low-cost access to the private equity sector. The fund tracks the shares of 26 private equity companies, including two household names, 3i Group Plc and Blackstone Group. This ETF is a truly international fund and is expected to become a long-term holding for our clients. The underlying total expense ratio is 0.7 per cent.

The iShares Developed Markets Property Yield Fund is an ETF that aims to track the performance of the FTSE Developed Dividend+ Index as closely as possible.

In this way, it offers exposure to listed real estate companies and real estate investment trusts from developed countries worldwide (excluding Greece) with a one-year forecast dividend yield of 2 per cent or more. This EFT costs 0.59 per cent a year.

Deutsche Bank's Hedge Fund Index ETF is the lowest cost and safest way to access the hedge fund sector. There's no way to select a good hedge fund ahead of time: they can prove expensive mistakes as investors in Bernard Madoff's supposed hedge fund discovered. This ETF is the safest way to participate in the hedge fund arena."