Category
Investing
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What is an ETF?
Dec 07, 2015 |
6 Minute ReadAn Exchange Traded Fund (ETF) is an investment vehicle designed to track a particular index by offering ownership in a basket of securities that replicate that index, such as the S&P 500 or the Dow Jones Industrial Average. ETFs trade like stocks on major exchanges and offer several benefits such as lower expense ratios, trading flexibility and tax efficiency.
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Variety of Objectives Offered Using ETFs
ETFs were first introduced in 1993, tracking the S&P 500. At that time there were only a few ETFs with about $500 million in assets. Now there are more than 700 ETFs available, with assets totaling more…