An ETF is created by a fund provider who owns a basket of
underlying assets. The fund itself then tracks its performance, with shares in the ETF being sold to
investors. This means that, as an investor, you’ll own a portion of the ETF without owning the
individual assets that it’s made up of.
Buyers and sellers can then trade the ETF throughout the day on
an exchange like they would with a regular stock. Prices are market-determined and usually differ
from those of the assets they track.
When online ETF trading with FXOpen, you’ll gain exposure to the
ETF via a CFD, so you do not own it directly.