Tag: ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund and a marketable security that tracks an index, commodity, currency, or a mix of various asset types. Unlike mutual funds, ETFs are traded on stock exchanges, similar to individual stocks, allowing investors to buy and sell shares throughout the trading day at market prices. They can contain a diverse range of assets, including stocks, bonds, or other securities, and are designed to provide investors with diversification, flexibility, and lower expense ratios compared to traditional mutual funds. ETFs may be passively managed, aiming to replicate the performance of a specific index, or actively managed, where fund managers make investment decisions to outperform a benchmark. Investors use ETFs to gain exposure to specific sectors, regions, or investment strategies efficiently.