Нэмэгдсэн: 2019-02-13 05:42:00

An Exchange Traded Fund (ETF) is a marketable security that is traded on a stock exchange, like a common stock. ETFs are typically more liquid, with lower fees than mutual fund shares; ETF shareholders only pay fees to brokers. However, though ETF investors are entitled to buy or sell shares of the fund; they cannot own the assets of the fund.ETF is more tax efficient in most countries, since investors are not liable for capital gains tax (unlike mutual funds). These advantages attract investors’ interest, and investments in ETFs have been increasing in international financial market recently. ETFs have shown a 23% average annual growth across America, and assets of ETFs are expected to exceed US$5.9 trillion by 2021 (according to the PwC’s survey). In Asia, the ETF market is expected to exhibit a 22% average annual growth, and assets are forecast to reach US$560 billion by 2021.

There are currently no ETFs in Mongolia, which means there are great opportunities for this type of fund in the Country’s financial market. The FRC is undertaking regulatory actions to encourage investment funds, and to increase types of financial instruments traded in the Exchange. The FRC is also striving to improve the securities market infrastructure.