An Exchange Traded Fund (ETF) is an open-end fund listed on the Stock Exchange of Thailand (SET). An ETF can be traded as easily as a stock, but like an Index Fund it has a diversified portfolio and thus lower risk. ETFs also have lower management fees than other actively managed funds. ETFs may track many types of underlying asset such as Equity ETF, Bond ETF, and Gold ETF.
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Characteristics of ETFs
- ETFs can be traded real time via any broker, just the same as trading stocks.
- The return on an investment of ETF is closely linked to the return on an underlying index.
- An equity ETF holds a portfolio of securities such as the stocks in an underlying index.
- The market price of an ETF will normally be close to the Intraday Indicative Value (IIV) due to arbitrage and the support of the market maker. |
