ETFs Exchange Traded Funds

Exchange Traded Funds or ETFs are investment funds that are traded on a stock exchange in a similar manner to a stock or share. The fund is a container that holds assets such as stocks and bonds. The value moves up and down with the value of the underlying assets hence its value is continually moving up and down as these assets move in value. This allows the fund to be traded at any time throughout the trading day.

The selection of the assets is either based on tracking an index or they can is some recent cases be actively managed. This index tracking allows the fund managers to attract investors by selecting a particular sector of operation such as green, ethical, sustainable etc. Index tracking keeps the cost and overheads down to a minimum to maximize the funds value.