- Diversification – with purchasing only one security, investor buys underlying portfolio of assets.

- Easy to use –it is possible to buy and sell the exchange traded fund’s certificates at any time from any trading platform. Purchasing certificate, investor actually “buys market portfolio”.

- Transparency –passive strategy of portfolio management stipulates that investor always knows composition and structure of the fund’s portfolio, which has to correspond composition and structure of the underlying index.

- Low cost – expenses of exchange traded funds are considerably lower than of the corresponding investment funds.

- Liquidity - the exchange traded fund’s certificates can be easily traded on stock exchange as common stock, even intraday.

- Stock exchange instrument – exchange traded fund’s certificate can be used in any stock exchange operations, e.g., short selling or trading on leverage. Besides, investment into exchange traded fund allows building different individual investment and trading strategies.

	ETF	Investment fund	Stocks
Pricing	Real time	End of the day	Real time
Purchasing Price	Market	NAV	Market
Purchasing procedure	Broker	AMC, agents	Broker
Investment strategy	Passive management	Active management	Independent management
Diversification	High	Different	No
Liquidity	High	Low	Different
Operations with asset	Buying/selling, trading on leverage, intraday	Buying/selling from 13:00	Buying/selling, trading on leverage, intraday
Investors’ expenses	Broker’s commission	Success fee, management fee, broker’s commission	Broker’s commission