ETF means Exchange Traded Fund. It is an investment vehicle that tracks a particular index or a sector in it,e.g. S & P 500 index, price of gold, bonds, etc. It tries to mirror the performance of the underlying index by holding the kind of stocks in the tracked index. ETFs are professionally managed and the investor does not need to bother about picking the stocks. ETFs are traded on the exchange and they have lower costs as stocks are not changed often. Some examples of ETFs are given below:

• SPDR® Portfolio Corporate Bond ETF  tracks Bloomberg U.S. Corporate Bond Index.
• Vanguard Russell 2000 Growth ETF tracks the performance of the Russell 2000® Growth Index (US)
• NEWGOLD Exchange Traded Fund tracks the Rand (SA) price of gold.
• STANBIC IBTC ETF 30 tracks the NSE 30 Index (Nigeria)
• VETIVA S & P Nigeria Sovereign Bond ETF mirrors the S&P Nigeria Sovereign Bond Index.