Types and Structures of ETFs

Exchange-Traded Funds (ETFs) have revolutionized the investment landscape since their introduction in the early 1990s. These versatile investment vehicles combine the diversification benefits of mutual funds with the trading flexibility of individual stocks. As described in the previous lesson, unlike traditional mutual funds that trade only once per day after market close, ETFs trade throughout the day on stock exchanges, offering investors real-time pricing and execution. 

In the following lesson, we’ll take a closer look at the various types of ETFs, including equity, bond, commodity, and specialty ETFs, along with an examination of the different structural approaches, namely physical and synthetic ETFs. This exploration will provide a comprehensive understanding of the options available in the ETF marketplace and how they can be utilized to achieve diverse investment objectives.