Merrion Stockbrokers is suggesting index-linked exchange traded funds for investors who want to build a global diversified equity portfolio. The main advantage is that these funds are liquid - they trade like a share and have a daily quoted price.

Merrion says there is an extensive range of exchange traded funds available covering all the major stock market indices as well as more minor markets and sub-sectors of markets. The difference between the funds and the better known tracker funds is that exchange traded funds have their own daily price, to give visibility and liquidity. According to Merrion, the funds are good value because there is a narrow bid offer spread, no management fee and investors get dividends.