ETFs

An ETF, or exchange-traded fund, is a type of investment fund that is traded on a stock exchange, much like a stock. ETFs are designed to track the performance of a specific index or a basket of assets, such as stocks, bonds, commodities, or currencies.

ETFs are similar to mutual funds in that they pool together funds from multiple investors to invest in a diversified portfolio of securities. However, ETFs differ from mutual funds in that they are traded on an exchange like a stock, which means that investors can buy and sell shares of an ETF throughout the trading day at market-determined prices.

ETFs are typically passively managed, meaning that they seek to track the performance of an underlying index or asset class, rather than actively trying to beat the market. This passive management approach typically results in lower fees for investors compared to actively managed mutual funds.

ETFs have become increasingly popular among investors in recent years, as they offer a low-cost, diversified investment option that can be easily traded on an exchange. However, like any investment, it’s important to research and understand the risks associated with ETFs before investing.