An exchange-traded fund (ETF) is an investment fund that commonly aims to track an index. Units of an ETF could be traded at a stock exchange and bought or sold just like a share. An ETF facilitates intraday trading also.
An ETF enables you to invest in a broad range of shares. Investors who want to invest in the share market but don’t want to invest in a particular stock or don’t want to select stocks on their own may choose to invest in ETFs. An ETF is a type of managed fund.
When you buy units in a managed fund, the fund manager invests your money according to the fund’s investment goals. As a result, the fund may perform better or worse than the market.