ETF
An Exchange-Traded Fund (ETF) is a type of investment fund that holds a collection of assets, such as stocks, bonds, or commodities, and is traded on a stock exchange like a regular stock.
An Exchange-Traded Fund (ETF) is a type of investment fund that holds a collection of assets, such as stocks, bonds, or commodities, and is traded on a stock exchange like a regular stock.
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ETFs offer a simple way for investors to diversify their portfolios and gain exposure to a broad market or specific sector without buying individual securities.
The key distinction of an ETF is its structure and liquidity. Unlike a traditional mutual fund that is priced once a day after the market closes, an ETF’s price fluctuates throughout the trading day, allowing investors to buy and sell shares at any time. This flexibility makes them a popular choice for both long-term investors and day traders. ETFs also typically have lower expense ratios compared to mutual funds and can be used to track a wide range of indices, from the S&P 500 to specific sectors like technology or healthcare, or even international markets.
