Question: In stock exchange, what is ETF?
exchanged traded fun, what is it?
Answer:
They are funds that trade just like shares. For example Gold is a commodity not a share. But if someone buys the gold and stores it and then issues paper against that stored gold, the paper (shares) can be traded on the market. That's a Gold ETF.
ETFs can be issued for a variety of underlying instruments, like indices, commodities, metals, agricultural produce (like wheat,coffe etc.), sectors, oil etc.
ETF stands for Exchange traded fund. ETF trades like a stocks.
An exchange traded fund represent a pool of securities. This pool of securities can be detained directly by the ETF or have a synthetic exposure on a basket of securities
A the beginning ETFs were only index funds (tracking some index). Now we can see the emergence of active ETF, ETFs following an active strategies.
Some people think that ETF will replace Mutual fund in the future because ETFs are more tax efficient and less expansive than Mutual fund (no front, no back load, management fees lowers...)
Exchange Traded Funds are often build to represent thinks like indexes or commodities, and made to be available to the general public through the stock exchanges.
Some examples of things that ETF's can represent are: gold, silver, oil, gasoline, the S&P index, and all sorts of wild things they've come up with in the last couple of years.
There are also inverse ETF's, they are designed to give you the same benefit as you would get if you "shorted" a specific commodity or index or whatever. For example, you can get a regular crude oil ETF that goes up when the price of oil goes up, or you could get an inverse crude oil ETF which would go up when crude oil goes down in price.
It stands for an Exchange Traded Fund. Their kind of like mutual funds, but trade throughout the day like stocks. They typically consist of an unmanaged index that is rebalanced quarterly, semi-annually or annually to it's required allocation. They come with risks of investing just like anything else.
Be cautious there are different types of Exchange Traded "Products" that are designed to gain exposure to different types of markets.
This website has great information about how they work. Enjoy.
http://www.investopedia.com/terms/e/etf.…
http://www.bloomberg.com/markets/etfs/et…
Exchange Traded Fund. It's a mutual fund that trades like a stock quoted all the time the market is open instead of once a day like conventional mutual funds. Some can be bought on margin and shorted, unlike regular mutual funds.