Exchange traded fund (ETF) is a fund that trades on an exchange like a stock. Some of the features of bond ETFs in the market place are:-

• The market price of these shares will fluctuate as the collective price underlying securities.
• Due to uncertainty of conditions investors sometimes sell shares at the same time which results in crashing the market price. Market of these shares is very volatile.
• There is a complete transparency in pricing, centralized trading, and visibility to all as a result there is more connectivity between buyers and seller. Therefore, trading ETF bonds is less complicated and more efficient as compare to individual bonds.

If you wish to read more on ETFs, click on the link below for full article by Matthew Tucker: http://www.investopedia.com/partner/blackrock/articles/investing/041516/what-happens-bond-etfs-stressed-markets.asp

Exchange traded fund (ETF) is a fund that trades on an exchange like a stock. It is traded in bundles basically because it becomes difficult to sell 10, 20 or 50 shares. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Large financial institutes are known as AP’s (Authorized Participants).They partner with an ETF provider and create an initial fund share which is then made available for investors. AP also helps in stabilizing the price. When demand increases, ETF price increases and thus the AP buy security to meet the demand and vice- versa. To know more, you can read the following article by Matthew Tucker  

https://www.blackrockblog.com/2016/01/27/etf-strategy-new-year/?cid=blog:stressed:matt