What is an ETF?

ETFs are exchange traded funds that track an index and are quoted on the ASX. The units of an ETF trade like listed shares. Like individual securities, ETFs provide investors with the flexibility to buy and sell units on the securities exchange throughout the day, at the market price.

An ETF is similar to a managed fund, providing access to a diversified portfolio of securities, but it can be bought and sold at quoted prices at any time during the ASX trading hours (10am to 4pm). Ordinarily, unquoted managed funds can only be bought or sold once per day, based on closing prices for the day. ETFs do not have minimums to invest, minimum holding periods or early withdrawal fees. ETFs hold the underlying securities in a trust separately with a custodian. 

UBS IQ ETFs: Index based investments with a difference

Further information on ETFs