Back to Glossary
An ETF, or Exchange Traded Fund, is a type of investment fund that holds a collection of assets like stocks or bonds and trades on stock exchanges like individual stocks.
In Depth
ETFs offer diversification by allowing you to invest in many different assets at once, similar to a mutual fund. However, unlike mutual funds, ETFs can be bought and sold throughout the day at market prices. This flexibility and often lower fees make them a popular choice for investors looking to track a specific index or sector. They are a good option for both beginners and experienced investors.
Example
Instead of buying individual stocks, I invested in an ETF that tracks the S&P 500 to get broad market exposure.