An ETF, or Exchange-Traded Fund, is a type of investment fund that holds a collection of assets such as stocks, bonds, or commodities.
ETFs trade on stock exchanges just like individual stocks.
They are popular because they offer diversification, liquidity, and low fees.
Some track major indexes (like the S&P 500), while others focus on specific sectors, commodities, or themes.
Key Points
Traded on stock exchanges like individual stocks.
Provides diversification by holding multiple assets.
Usually has lower fees than mutual funds.
Can be bought and sold throughout the trading day.
