Abstract
Exchange-traded fund is a type of exchange-traded product. ETF is a fund that is traded as a typical financial asset. Just like an index fund, ETF represents a basket of assets that reflect popular stock index. ETF traded just like any other company on the stock exchange. By owning ETF investor receives two important advantages – the diversification of index fund plus the flexibility of trading financial assets. There are different types of ETFs. Mainly divided into index, commodity, bond, currency, exchange-traded trusts and leveraged exchange-traded funds. The article discusses the basics of exchange-traded fund, does a brief history review on the emergence of exchange-traded funds, and provides information on the basic and specific types of exchange-traded funds.The used scientific tools include:• study of scientific literature;• study the performance of different markets which operate with exchange-traded funds;• meaningful analysis and summary of theoretical and practical applied information.
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