They are mutual funds that follow an index and are divided into equal units that are traded in the financial market during trading periods. These funds combine the advantages of both mutual funds and equities.
The market maker provides buy and sell prices for ETF units close to the Net Asset Value (INAV).
Investors can trade ETFs like any security by contacting any market brokers. These units are created and redeemed by the market maker or any licensed entity.
ETFs are not limited to stocks, but may include sukuk or commodity such as gold and silver.
The minimum number of units through the Fund market is one unit, while the process of creating units is subject to the terms and conditions of the Fund itself.