What are ETFs and should you buy one? – Sydney Morning Herald

Sometimes, however, the money wizards have put their wands away and simply promised to deliver the average return of a particular financial index, such as the Australian sharemarket benchmark S&P/ASX200. These types of funding pools are known as index funds.
For most of history, both actively managed and index funds operated by fund managers directly approaching and dealing with investors. However, throughout the 20th century, new ways were found for funds to interact with investors via the sharemarket.
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