Trading in Exchange Traded Funds

Exchange Traded Funds (ETFs) are like traditional managed funds (which you may be familiar with) but they are instead traded on a stock exchange like other company stocks.

For do-it-yourself investors it is handy to know about ETFs and how they work. It is also important to understand how they are different to Listed Investment Companies (LICs).  To learn a little more about how ETFs work I recommend this brief article from Vanguard Investments Australia called “ETFs: Market Making, Spreads and Liquidity“.