What are Exchange Traded Funds?

Описание: An exchange-traded fund is a passive approach to investing.
The focus of the ETF is just to mirror an asset class.
Typically, ETFs are pegged to indices. However, they can also be linked to specific commodities like gold, silver, etc.
The underlying assets held by the ETF are owned by the fund AMC.
Unlike equity shareholders, ETF holders do not hold a share in the underlying assets but only in the representative ETF.
The gains are either reinvested or paid out as dividends.
ETFs can be bought and sold using your trading account and held in your Demat account.
They are based on real-time pricing, and the costs are low, even if you add the brokerage and statutory charges.
ETFs are a transparent and real-time way to participate in an asset class.