An exchange traded fund an index fund but trades like a stock on an exchange to shareholders as they commonly are with mutual funds . Exchange traded funds can be a good alternative to riskier mutual funds learn how exchange traded funds etfs work. How etfs work by toph tucker march 9 2016 exchange traded funds they roll to the right as their price goes up and to the left as their price goes down. Exchange traded funds etfs are starting to gain traction as an increasing number are listed on the australian stock exchange so how do etfs work and what. Exchange traded funds are funds that can be bought and sold throughout the trading day and they can also be bought or sold on short margin
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