Introduction to Exchange-Traded Funds (ETFs)

Introduction to Exchange-Traded Funds (ETFs) Course

ETFs have transformed the investing landscape by combining the diversification of mutual funds with the flexibility of stocks. In this course, you’ll explore how ETFs are structured, how shares are created and redeemed, and the critical role of authorized participants and issuers in maintaining price efficiency. You’ll also learn how ETFs trade on exchanges, why they’re so cost-effective, and what makes them a cornerstone of modern investing.

Learning Objectives

By the end of this course, learners will be able to:

• Define exchange-traded funds (ETFs) and explain how they combine characteristics of mutual funds and stocks.
• Describe how ETFs are structured and operated, including open-ended fund design, exchange trading, and the roles of authorized participants and market makers.
• Differentiate ETFs from other exchange-traded products (ETPs) such as ETNs, UITs, and commodity pools.
• Explain how ETF shares are created, traded, and redeemed, and how the arbitrage mechanism keeps prices aligned with net asset value (NAV).
• Identify and compare major types of ETFs – including equity, fixed income, and specialty ETFs – and understand their applications and risks.
• Evaluate ETF performance and efficiency using key metrics such as expense ratio, AUM, bid-ask spread, tracking error, and total cost of ownership.

Who Should Take This Course?

This course is ideal for finance professionals new to ETFs and anyone interested in understanding how these funds work, how they’re traded, and how they fit into investment portfolios.