An exchange traded fund (ETF) is a sort of investment that includes an array of securities; for example, stocks—that generally track an underlying index, in spite of the fact that they can put resources into any number of industry segments or utilize different strategies.
Exchange traded funds are in numerous ways similar to mutual funds; be that as it may, they are listed on stock market exchanges and exchange traded funds trade throughout the day just like the rest of the securities.
A well known example would be the Nifty 50 exchange traded fund, which tracks the Nifty 50 Index.
Exchange traded funds contain numerous sorts of investments, that may include including shares, bonds, commodities, or a blend of these.
An exchange traded fund is a marketable security, which means it has a related value that enables it to be purchased and sold with ease.
An exchange traded fund is termed as an exchange traded fund due to the fact that it's traded on a stock market exchange just like other securities are.
The price of an exchange traded fund’s shares will rise and fall all through the trading day. Unlike mutual funds, which are not traded on an exchange, ETFs are purchased and sold on a stock market exchange.