How is an ETF (exchange-traded fund) different from an ordinary fund?

An ETF is a fund managed to track changes in a specific index or asset price, and it is listed on an exchange and traded like a stock.

Because its holdings can be checked daily through disclosure of its portfolio deposit file (PDF), its management tends to be more transparent than that of ordinary funds, and its fees tend to be lower. Besides passive ETFs that simply track an index, there are also active ETFs that aim to outperform the index.