What is Exchange-Traded Fund (ETF)?

Exchange-Traded Fund (ETF) is a type of investment fund that can be traded on stock exchange.

Main features of ETFs are:

• Diversification - Like a traditional mutual fund, a typical ETF owns a large number of financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities to diversifies your investment.
• Transparency - ETFs are transparent because they disclose their holdings daily.
• Cost efficiency - Management fees on most ETFs are usually much lower than traditional mutual funds.
• Liquidity - ETFs are highly liquid, meaning that investors can typically buy and sell ETF shares throughout the trading day, while traditional mutual funds can only be traded directly or indirectly with fund operating companies.
• Flexibility - ETFs can be traded with adjustable prices on the stock exchange, while traditional mutual funds can only be traded with fixed prices given by fund operating companies

⇒ Largest ETFs

⇐ Introduction of ETF

⇑ Introduction of ETF

⇑⇑ Exchange-Traded Fund (ETF)