Exchange-Traded Funds Defined
Exchange-traded funds is a pooled investment of stock exchanged traded investments and the money to fund them in one simple package. An example of this is the tracker fund that is used for a geographical or energy focused sector. Funds can be easily traded on the open market without the previously used intermediatory steps used prior to the late 90’s. First used in Toronto, Canada, on the Toronto Stock Exchange, the sole purpose of these funds is to allow public participation in industrial or sector economic growth that was previously not normally available in the trading market. Such funds give investors equivalent returns of tracker funds, combined with share liquidity.