Basics
Learn the basics of ETFs, including their history, how they compare to mutual funds, what types are available and more.
What is the history of ETFs?
The world's first ETF was created in Canada in 1990, transforming the investment landscape and offering the advantages of pooled investing and trading flexibility.
In their early days, ETFs were used primarily by institutional investors to execute sophisticated trading strategies. However, it wasn't long before individual investors and financial advisors embraced ETFs.
Since their introduction, ETFs have grown to become one of the most popular products in the global investment industry. Today, global ETF assets total more than USD 4.8 trillion, invested in more than 7,600 ETFs and ETPs.3
ETF milestones
1990
The world's first ETF was introduced in Canada in 1990.
1993
First ETF in United States is launched.
2004
The first Vanguard U.S.-domiciled ETFs were cross-listed on the Mexican Bolsa de Valores.1
2009
Global ETF assets reach $1 trillion,2 driven by the shift from commision-based financial advice to fee-based structures.2
2018
Global ETF and ETP assets total more than $6.5 trillion, invested in 7,430 products.3
1 Source: Bolsa Mexicana de Valores as of March 23, 2017.
2 Source: ETFGI as of December 31, 2009.
3 Source: ETFGI as of December 31, 2018.
Note: ETF assets and product data include exchange-traded funds and exchange-traded products (ETPs).
ETF fundamentals
Indexing
Indexing, how ETFs are indexed, the differences between excess return and tracking error, and more.
Trading
Learn how ETFs trade, where they get liquidity, common order types, how premiums and discounts work and more.
Strategies
Learn about strategic and tactical uses for ETFs, including asset and sub-asset allocation, portfolio completion, cash equitization and more.