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2021 | OriginalPaper | Chapter

9. Exchange Traded Funds (ETF)

Author : Felix I. Lessambo

Published in: International Finance

Publisher: Springer International Publishing

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Abstract

ETFs arose to address all the weaknesses and capture all the benefits of mutual funds. Just like closed-end funds, they trade in the markets continuously, and just like open-end funds, they can be created and redeemed at any time by investors. The purpose of an ETF is to match a particular market index, leading to a fund management style known as passive management, which is the chief distinguishing feature of ETFs, and it brings a number of advantages for investors in index funds.
Footnotes
1
The net asset value (NAV) of an ETF represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day.
 
Metadata
Title
Exchange Traded Funds (ETF)
Author
Felix I. Lessambo
Copyright Year
2021
DOI
https://doi.org/10.1007/978-3-030-69232-2_9

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