EXCHANGE TRADED FUNDS: Types

There are different types of ETF unlike close-ended funds can create or cancel units as investors enter or leave the fund. The size of the ETF, rather than the price, will fluctuate based on the demand and supply for the ETF. There are several ETF launched till date they can be broadly categorized as follows:



 Global ETF: There are ETFs tracking indices beyond the domestic markets. Ex specific regional funds that track fast growing markets in China and Korea.


 Fixed Income ETF: ETF tracking fixed income products. ETF in this case may declare and pay dividends.


 Commodity ETF: ETF that track commodity or commodity indices take advantage from the gains in the commodity market.


 Currency ETF: ETF tracking currency or currencies. Ex ETF- Euro Currency Trust (FXE) was introduced in Dec 2005 which trades on the NYSE. Hence investors can take exposure in Euro through this fund.