An ETF is an investment vehicle which is constructed like a mutual fund but trades like an individual security on a stock exchange. The ETF units can be created or redeemed by authorised participants as required and as ETFs are listed on stock exchanges just like a share, they can be traded whenever the exchange is open,? iShares (part of BlackRock; formerly Barclays Global Investment), vice- president Robert Broadwell, said during an educational seminar held yesterday. Instead, the investor is given exposure to whichever companies make up the index that the ETF is tracking, Broadwell said. GCC-based investment professionals are using ETFs in multiple ways, despite a lack of regulatory framework or local bourses pushing for ETFs to be. The result is a blend of active and passive management that can be tailored to best fit an optimal asset allocation and a client?s risk profile. GCC based professional investors are also significant users of ETFs for tactical trading strategies, which typically include specific sector, single country or emerging market ETFs,? Broadwell said. read more

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