Exchange traded funds or ETF (which are investment product representing a basket of securities that track an index) can be of many types here are some of them –
1. Index ETF – An index ETF is considered the most common type of exchange traded fund, and it can be defined as an ETF which tracks as well as attempt to replicate the performance of an index by holding in its portfolio the stocks which represents the index.
2. Sector ETF – It is an ETF which represent a segment or sector of an economy that may be either related to information technology, health care, financial etc…
3. Country or Regional ETF –It is an ETF which tracks or try to replicate the performance of any particular country as a whole and also there some ETF which tracks a particular region like Asia or Europe as a whole and therefore they are called regional ETF.
4. Currency ETF – These ETF tracks various currencies of the world like us dollar or Japanese yen and hence these type of ETF provide investors a different investment opportunity.
5. Commodity ETF –These ETF are designed to track the performance of commodities like gold, silver, crude etc…Commodity ETF are more popular than other ETF because of extreme liquidity which they offer to the investors.
Apart from above there can be many other ETF like leveraged ETF, bond ETF etc… which can be designed by various institutions for their clients according to their preferences and needs.