An Philippaerts, Benjamin creator Tang, John C.S. Chairperson Sununta Siengthai Examination Committee Dimmitt, Nicholas J. Examination Committee text series technical report th Pathum Thani, Thailand Asian Institute of Technology 2007 continuing eng 40 leaves : ill. The report attempts to define and to explain the reason for the development of Exchange Traded Funds (ETFs) in the United States over these last years. Data used for the study is collected through Investment Companies Institute, market quotations' providers and several websites and books dedicated to finance. The significant finding from the analysis shows that investors have a growing interest in index trackers, and that ETFs benefit abundantly from that market trend. Their easiness to be purchased and hold and their low expense ratios justify partly their success. The diversity of available underlying indices is important, covering domestic and international equities from all industries, but also bonds and commodities. ETFs creation and redemption process is innovative, to what extent it is based on securities swap and not on purchases. However, this innovation does not allow them to be systematically more cost effective than some mutual funds. A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration in International Business Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 Exchange traded funds United States Asian Institute of Technology. http://203.159.5.9/ait-thesis/detail.php?q=B10556 http://203.159.5.9/ait-thesis/detail.php?q=B10556 090124 20260817162338.0