• An Exchange-Traded Fund (ETF) is a type of investment fund traded on stock exchanges, similar to individual stocks, which pools money to invest in a diversified portfolio of assets like stocks, bonds, or commodities.
  • The trading value of an ETF depends on the net asset value of the underlying assets that it represents.
  • They are regulated by SEBI in both NSE and BSE.
What makes them important?

  • Gold and silver exchange-traded funds are increasing their asset base due to strong inflows into gold and silver.

 

Source: The Hundu Business Line