Various types of ETFs for investment?

ETF was generated in 1989 by Index Participation Shares (an S&P 500 Proxy) which traded on the Philadelphia Stock Exchange & American Stock Exchange . In 1990, a similar product was launched on Tokyo Stock Exchange. ETFs have seen rapid growth in the 20 years since their creation. They now account for more than $882 billion and 916 funds at the close of 2010. This is the most well known product for investment.

These are the different types of ETFs:

• ETF for Gold: An ETF that tracks the price of gold. Units representing physical gold that can be either in paper or dematerialized form are called Gold ETFs. These units can be traded on the Exchange just like any other stock. Investors can participate in the gold bullion markets through gold ETFs, without having to physically deliver gold.
• Index ETF: Index TFs are ETFs whose unit values are derived from an index. The underlying index acts as a tracking instrument. These ETFs track an index's performance by holding the index contents in their portfolio.
• International ETF These ETFs use an international index such as NASDAQ or HANG SENG to track their underlying instruments. The country's major index is usually chosen, as it is designed to reflect its overall economic situation.
• Sector-Specific ETF: These ETFs track a specific sector such as Infrastructure, Banks or Infrastructure. These ETFs closely monitor the performance of the underlying sector and provide diversification to your investments.

It was a strong ally, especially during the 2008 meltdown. Investors across all geographies have been attracted to the many advantages such as convenience, low cost and transparency. All ETFs products launched initially tracking different equity indices. As investors gained confidence and the industry matured the product range has expanded to include funds that track Bond, Commodities Currency, Sector, Country, and other indices.