What is ETF?
ETF is the abbreviation of Exchange Traded Fund. ETF is such a security that keeps a track of index. It boasts the assets of various types in a portfolio like an Index Fund. But its trading is done like shares in exchange. The probability of fluctuations in the prices under ETF remains all the times.
Since its trading is done like shares, thus the price of its total assets could not be combined daily like NAV mutual fund. When you buy ETF, then you get the mutual fund full of diversity. You also have the facility to sell it in short term.
You can buy it on lower margins. Another benefit is that the cost ratio of most of ETF is very low. To purchase them, you can get rid from the broker by paying him the commission equivalent to routine order.
To read more about ETF, please visit the web page at Tips for investment in ETF (Exchange Traded Fund)