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An exchange-traded fund (ETF) is a Binary financial instrument comprised of several assets grouped together to serve as one tradable asset. Each fund follows a certain market strategy or index and is designed to either suit the hedging needs of a specific financial institution, or to be a low-risk option for investors. ETFs are created by financial bodies using a team of experts who tailor each fund to meet its specific goal. The assets within the fund are owned by its creators, and just like stocks, dividends can be distributed to investors from time to time. ETFs are usually considered to be long-term investment tools, as they are geared towards low-risk, and are designed to yield steady profits over time.