An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.
An ETF combines the valuation feature of a mutual fund, which can be bought or sold at the end of each trading day for its net asset value, with the liquidity feature of a stock, which trades throughout the trading day at prices that may be more or less than its net asset value. ETFs have been available in the US since 1993 and in Europe since 1999. ETFs traditionally have been index funds, but in 2008 the U.S. Securities and Exchange Commission began to authorize the creation of actively managed ETFs.
The Daily Omnivore 
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