Exchange traded funds or ETFs are a very low cost way to participate in un-managed mutual funds which aim to follow an particular investment index, However, not all ETFs are alike, apart from their low cost, which may vary from fund to fund.
The size of ETF will be important, as the larger the fund, the more efficient it can be, not only in low cost. There is also the ability to follow the particular index they track. How far off the mark is the ETF if accomplishing hitting that mark; the term is usually called tracking error or tracking volatility.
Then you have the spread or amount of difference between the bid and asked price, or what the ETF can be bought and sold at. Moreover, there may be wide differences between the market price the funds will trade at and the net asset value of its holdings. The better the ETF, the smaller such discrepancies. (See the Earl J. Weinreb NewsHole® comments.)
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