Exchange traded fund

Exchange traded funds or ETFs pool together securities and then divide them up into smaller units to sell to investors. The securities in the portfolio are the same as those on an index of an exchange, in the same weightage, but with more volumes. ETF units get traded like a share on an exchange, offering intraday liquidity.

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ETFs are a product if passive investing, and carry low transactional costs for the investor, as a result.