What is ETF?

What is ETF?

Simply put an exchange traded fund (ETF) is a listed unit trust. Therefore it behaves like a unit trust (or also known as mutual fund) as well as like a stock, since it is traded on an exchange (such as Bursa Malaysia).

 The good thing is that it shares the best of both worlds. Similar to a unit trust, ETF is a collective investment scheme in which a pool of money is invested either in a particular group of assets or a range of asset classes such as equities, bonds and commodities.