| An Exchange Traded Fund (ETF) is an open-ended fund or unit investment trust that is registered under the Investment Company Act of 1940, and traded by investors on a registered national securities exchange. The ETF issues shares or trust receipts giving the owner of the shares an economic interest in the fund assets. An index based ETF seeks to track the performance of an index by holding in its portfolio either the contents of the index or a representative sample of the securities in the index. The number of shares outstanding in an ETF is not fixed, hence they are often called "open-ended" exchange traded funds or ETF for short.
 How do ETFs work?
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