Investing Basics How do ETFs worK

Investing Basics: How do ETFs work?

ETFs enable you to gain diversified exposure to a stock market, sub-sector or asset class by investing in just one cost effective and easily traded product.

ETFs operate just like mutual funds with the big difference that they are listed on the stock market which means that whereas traditional funds can only be bought into or cashed out of once a day, you can trade ETFs whenever you like during normal market hours just like other share.