An ETF, or exchange-traded fund, is a type of investment vehicle that holds a diverse portfolio of assets and trades on a stock exchange, similar to a stock. ETFs can hold a wide range of assets, including stocks, bonds, commodities, and other investments.

ETFs can be bought and sold on a stock exchange, similar to stocks, which makes them easy to buy and sell. They can also be traded throughout the day, unlike mutual funds, which are priced only at the end of the trading day.

Another benefit of ETFs is their diversification, which is similar to mutual funds. Because they hold a basket of assets, ETFs can help investors to spread their risk across a variety of investments, rather than investing in a single stock or other security. ETFs are an attractive option for passive investors interested in easy to exit and low cost diversified instruments.

Please note, none of the information on this blog represents the opinion of my employer and all information does not represent a financial advice.