CFDs on ETFs
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Exchange-traded fund (ETF)
An Exchange Traded Fund (ETF) is an investment instrument traded on stock exchanges, structured in a similar way as mutual funds. The idea behind ETFs is that they track the performance and holding of a specifically defined index of securities, which gives investors an opportunity to buy a diversified portfolio as a single share of stock at a lower cost than buying each security separately. Unlike the Indices, Exchange Traded Funds – ETFs are traded as stocks on the major stock exchanges. Some of the main benefits associated with the ETFs are tax efficiency, transparency, liquidity, cost efficiency, and diversification.
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