Operation and use of exchange-traded investment funds

The application of traditional portfolio theory and classical methods of financial mathematics, which still represent the optimisation of an investment portfolio, is often unattainable for a wide range of investors. Therefore, the goal was to investigate the latest tools and fund approaches to investing. A comparison between the selected financial instruments had been made using systematic analysis. Information platforms (Google finance) have been used to obtain input data. The article examined the functioning and use of exchange-traded investment funds as an integral part of any modern economic system, without which an efficient allocation of resources is impossible. The index approach to investment, its advantages and disadvantages had been proposed and considered. The issues of predicting the movement of prices of financial instruments in the stock markets and forecasting their profitability had been identified. The article analysed the main investment directions, which can be used to form an investment portfolio. The financial instrument proposed and considered is the exchange-traded investment funds, which combine the best features of stocks and mutual funds, namely, equity funds, as an alternative to the traditional approach to the formation of an investment portfolio, and the opportunity to participate in the realisation of a complex investment process through a single transaction. The article considered opportunities for investment in the global financial markets in Ukraine, according to the S&P 500 and Nasdaq indices. The practical value of this study is to facilitate the search for new ideas for investing, suitable for beginners and professional investors and traders