Amsterdam, The Netherlands, August 13, 2014 -- Offering lower trading costs to traders worldwide, Exchange-traded Funds (ETFs) are cheaper to invest in than common stocks. Automatic systems follow an index to create a pool of securities and other assets and therefore make it easier for brokers to operate and maintain.

Nathan Most and Steven Bloom designed and developed Standard & Poor's Depositary Receipts (NYSE Arca: SPY), which were introduced in January 1993. Known as SPDRs or "Spiders", the fund became the largest ETF in the world. Common ETF types are: Index ETFs, Stock ETFs, Bond ETFs, Commodity ETFs, Currency ETFs, Actively Managed ETFs, Exchange-traded Grantor Trusts and Inverse ETFs.

Exchange-traded Funds are not a common type of investment around the world. Although ETFs have grown in popularity, they still claim a small slice of the investors’ money pie, compared to the amount invested in stocks, indices or commodities.

ETF Index investing is a form of passive asset in which the assets are invested in accordance with the composition of a stock or other financial index. It does not attempt to exceed the chosen index which serves as a benchmark a higher return.

ETF’s allow for individuals to gain exposure to certain sectors and industries, while being very similar to stocks. Part of the popularity of ETF’s is that they are often a cheaper alternative to a traditional mutual fund, though ETF’s are only really recommended to those who are experienced investors.

International Exchange-traded Fund Day is an initiative from www.investment-guru.com. For more information regarding ETF trading and more, please visit our website: http://www.investment-guru.com/etf-introduction

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