M.Phil Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, India
Online published on 23 December, 2013.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features. ETFs are the most popular type of exchange-traded product. Exchange traded fund is a new variety of MF which first came into being in 1993.the ETFs are organized as unit trusts, and are similar to index mutual funds, but are traded more like a stock. They represent a basket of securities that are traded on an exchange.
