Monday, July 13, 2009

Exchange Traded Funds Basics

Exchange Traded Funds Basics
ETF or Exchange Traded Funds are securities that are traded as stocks on the stock exchange. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets. Most ETFs track an index. They offer the advantages of mutual funds while being traded as stocks in the secondary market and can be bought and sold like any other stock. Individual investors having a demat account can trade in such funds.