An ETF (Exchange-Traded Fund) is a fund traded on the stock exchange that aims to replicate the performance of a specific index (e.g. European government bonds, emerging market equities, etc.) or a specific asset class (e.g. MSCI All Country World). This makes them an attractive way of investing in various securities on a broadly diversified basis by buying and selling shares in the ETF. Because they are listed on a stock exchange, they offer flexibility, liquidity and transparency for investors. ETFs are a popular investment opportunity to enter the market in a cost-effective and diversified manner.