ETFS
An
investment vehicle which deals on stock exchanges much like stocks is
known as exchange-traded fund (or ETF). An ETF grips resources such as
stocks or bonds and trades around the same cost as the net asset value
of its underlying assets over the course of the trading day. ETFs may
be attractive as investments because of their tax efficiency, low
prices and stock-like features. Most shareholders can buy and sell ETF
shares only in market dealings, but institutional investors can
transfer large blocks of shares of the ETF (known as "creation units").