ETF Region: Developed Markets An ETF is a type of investment fund that trades on a stock exchange and holds a basket of assets. Unlike mutual funds, ETFs are not actively managed by a portfolio manager. Instead, they are designed to track an index, such as the S&P 500 or the MSCI EAFE Index. Developed markets ETFs are a type of ETF that focuses on developed markets, such as the United States, Europe, and Japan. These ETFs offer exposure to large, developed economies and tend to be more stable than emerging markets ETFs. Developed markets ETFs typically have lower expense ratios than actively-managed mutual funds and provide investors with a simple way to access developed market stocks.