Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T17:14:59+05:30 2021-09-30T17:14:59+05:30In: Economics What is Exchange traded funds? What is Exchange traded funds? key economy terms Share Facebook 1 Answer Recent Rahul 0 Questions 518 Answers 176 Best Answers 2k Points View Profile Best Answer Rahul BRIGHT 2021-09-30T17:17:58+05:30Added an answer on September 30, 2021 at 5:17 pm Exchange traded funds ETFs or exchange traded funds are similar to index mutual funds. However, they trade just like stocks. ETFs were started in 2001 in India. They comprise a portfolio of equity, bonds and trade close to its net asset value. These funds mainly track an index, a commodity, or a pool of assets. They have the following advantages over mutual funds and equity/debt funds: Lower Costs: An investor who buys an ETF doesn’t have to pay an advisory/management fee to the fund manager and taxes are relatively lower in ETFs. Lower Holding Costs: As commodity ETFs are widely traded in, there isn’t any physical delivery of commodity. The investor is just provided with an ETF certificate, similar to a stock certificate. 1 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Spot Price? What is Sovereign Risk?