ETF Features

There are three features that are typically common to all ETFs

ETFs are open ended rather than closed ended funds. This means that the number of units on issue and available to be traded on ASX's equities market will fluctuate, according to demand.
ETFs involve a primary market for ongoing unit creation and redemption operating in conjunction with a secondary market, which is traded on the exchange. The ongoing primary market provides the means of increasing and decreasing the number of units on issue, as appropriate to strike a balance between supply of and demand for units. The secondary market provides investors with the ability to buy and sell the ETF units already on issue.
ETFs are designed to ensure that close price parity is maintained between the traded unit price on the secondary market and the net asset value of the units.

Indexed ETFs typically offer two additional features:

Low cost, in terms of the management expense ratio (MER) that is charged by the fund manager. Indexed ETFs are typically able to achieve lower operating costs through lower management fees, sponsor fees and shareholder-related expenses. However, brokerage will typically be payable when buying and selling ETF units on ASX.
High transparency in the portfolio of companies or other assets held within the fund. As the fund only accepts applications for new units in kind, the fund manager publishes information regarding the portfolio of shares that it will accept in return for issuing new units (or will deliver in return for redeeming ETF units) on a regular basis. This usually occurs just before market opens at the beginning of every trading day.

Hybrid ETFs typically offer two additional features:

Access to a broad range of management styles, asset classes and operational practices. Actively managed ETFs are usually designed with the needs of retail investors in mind and will offer access to a similar range of investment opportunities as is currently provided by unlisted managed funds.
Access to a range of complementary services. These can include regular savings plans, which allow investors to build up their investment in the fund over time, through making regular contributions and/or regular newsletters or updates provided by the manager to investors in the fund. Other complementary services are also possible.