The assets under management (AUM) of exchange-traded funds (ETFs) have touched a record high following a fourfold jump over the past two years.
Industry watchers say that domestic investors - who are known for their preference for actively managed funds - are increasingly taking to ETFs, a passive investment vehicle.
An ETF is a security that tracks an index, a commodity or a bond as an underlying asset. ETFstrade like a stock and can be bought or sold throughout the day as long as the market is in action. The cost in such funds is substantially lower than those of actively managed funds.
