Exchange-Traded Funds or ETFs have become a major force in the global financial system since their introduction in 1993. Now, trading of ETFs make up about 30% of daily trading in the US on a notional basis.
The products have become so popular because of the way they enable an investor to take an interest in a large variety of companies, industries, or commodities.
We spoke with Laura Morrison, a senior vice president of Global Index and Exchange Traded Products at NYSE-Euronext, where about 93% of all ETFs are traded, to find out exactly what an ETF is and why it has gained such popularity.
Produced by Business Insider Video
More From Business Insider
- Republicans Are Refusing To Appoint Members To Obamacare's Most Notorious Panel
- How 2 Brothers Brought Wagyu Beef To America And Started Selling The Most Expensive Steak In NYC
- Actually, Snapchat Doesn't Delete Your Private Pictures And Someone Found A Way To Resurface Them