An ETF is a basket of securities that trade like stocks and are listed on an exchange throughout the day at prices that change based on supply and demand. As ETFs trade like a stock, an ETF does not have its net asset value (NAV). The difference between ETFs and other types of index funds is that ETFs don’t try to outperform their corresponding index, but replicate its performance. Though ETFs have been in existence for quite some time, they haven’t gained the kind of popularity that the conventional Mutual Funds enjoy.
Gold ETFs are units representing physical gold which may be in paper or dematerialised form. These units are traded on exchange like a single stock of any company. They offer investors a mean of participating in the gold bullion market without the necessity of taking the physical delivery of gold.
Index ETF is the type of ETFs whose value is derived from an index.
International ETF invests in foreign-based securities. These ETFs have an international index like NASDAQ, HANG SENG as the underlying tracking instrument.
These ETFs have a specific sector such as infrastructure and bank as the underlying tracking instrument.
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