ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund and exchange-traded product that holds a collection of assets such as stocks, bonds, or commodities. ETFs are traded on stock exchanges, much like individual stocks, allowing investors to buy and sell shares throughout the trading day at market prices.

The key features of ETFs include diversification, as they typically contain a variety of investments within a single fund, and liquidity, as they can be easily bought and sold on the stock exchange. Many ETFs aim to replicate the performance of a specific index, sector, or asset class. They often have lower expense ratios compared to mutual funds, making them a cost-effective option for investors.

ETFs also facilitate various investment strategies, including hedging, short selling, and accessing markets that may be difficult for individual investors to enter. Overall, ETFs have become popular investment vehicles, providing both individual and institutional investors with flexibility and ease of access to a wide range of markets and investments.