What are ETFs?
Exchange traded funds are simply groups of assets, such as stocks or bonds, that are traded on a stock exchange. ETFs track an underlying index, such as DJIA. There are thousands of exchange traded funds worldwide (278249). Like single stocks, investors can use an ETF as an underlying for a derivative, meaning that a savvy investor can earn positive returns regardless of market conditions.
ETFs within the investment context
BlackRock has trillions of U.S. dollars in assets under management, so European ETFs comprise a small part of the company’s portfolio. Still, some of the largest investment banks worldwide, such as Deutsche Bank and UBS, are also ETF providers. This indicates that, while the majority of ETF providers are smaller financial firms, the instrument class attracts the interest of major players in investing.