Asked by Anonymous
Asked on 01 Jul 2018
Hi there :) This is a pretty good question. I will start with a simple one:
Exchange Traded Fund (ETF)
An ETF is a passively managed investment fund which is traded on the stock market
Passively managed because it just tracks the index (for example, buys the top 30 companies based on a certain allocation) hence lower fees
Traded on stock market indicates that it has high liquidity of buyers and sellers, which is a good thing for investors
You can actually read more about one of the more common ETFs bought in Singapore the STI ETF: Singapore's leading index fund.