NASDAQ

The NASDAQ is the second largest stock exchange in the United States of America. It was the world's first electronic stock market. Its main index is the NASDAQ composite which comprises of technology and growth stocks, both in the United States and Internationally.

S&P / ASX200

The S&P / ASX200 is the Australian Stock exchange index of the largest 200 companies by market capitalisation. That is each company's share price is multiplied by the number of tradeable shares to work out whether it is in the largest 200 companies listed on the Australian Stock Exchange. If it is, it is included in this index.

ETF- Exchange Traded Funds

An ETF is a security that is traded on a stock exchange. The difference between this and an ordinary stock is that the assets behind it are usually an index or a basket of stocks trying to replicate an index. As an example, one ETF traded on the Australian stock exchange is called the SPDR S&P/ASX 50 Fund. This replicates the performance of the top 50 Australian Shares.

REIT- Real Estate Investment Trust

A REIT was previously known as a listed property trust. That is a collection of properties that are held in one company and listed on the stock exchange. A large part of the ASX is made up of REITs, a few examples include General Property Trust (GPT), Stockland (SGP) and Westfield Holdings (WDC)

ESG- Environmental, Social, Governance

This is one of the newer terms that sits alongside Socially responsible investing. Many of the Fund Managers in Australia now incorporate ESG considerations into their stock selection process, believing that these factors can provide insight into longer term prospects of a company.

SMA- Separately Managed Accounts

A Separately Managed Account is like a see through managed fund. With a managed fund, your monies are pooled with other investors through a unit trust structure and then underlying shares are purchased. The tax results of the fund are then distributed to all of the separate investors. With a SMA however, you actually own the underlying shares directly, although they are still managed by a Professional such as a Fund Manager. The tax that occurs therefore is dependant on your own portfolio rather than the portfolio as a whole, thus providing the investor with more control over tax.