What are ETFs?
In simple words, ETFs (an abbreviation of Exchange Traded Funds) are similar to mutual funds, but traded on stock exchange, much like stocks. ETFs are funds or collective investment schemes, where many investors pool their money together and invest collectively into assets.
An ETF, or Exchange Traded Fund is an investment fund and it can be traded at the stock exchange from one private investor directly to another private investor without the need of an institution or 3rd party which determinate the price of the fund.
The price is negotiated between buyers and sellers and by demand and supply of the market.