What is an Exchange-Traded Fund (ETF)?
An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product that trades on stock exchanges, similar to stocks. ETFs are known for their diversification, low costs, and tax efficiency, making them a popular choice for investors looking to build a well-rounded portfolio.
Key Points:
– ETFs are similar to mutual funds but trade on stock exchanges
– ETFs offer diversification by investing in a basket of assets
– ETFs are known for their low costs and tax efficiency
In summary, ETFs are a great investment option for those looking to diversify their portfolio while keeping costs low.