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ETF Mechanics

November 10 2021

An Exchange Traded Fund (ETF) is a type of investment vehicle that in many ways is a hybrid of a mutual fund and a stock. Like a mutual fund an ETF can be built to track the performance of an index or can be actively managed. Similar to a stock, an ETF is bought and sold on an exchange. The first ETF was launched in the US in 1993. There are now more than 8,000 different ETFs available worldwide1 . ETFs have grown to a universe worth more than $8.5 trillion globally as of March 31, 2021.2

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