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, commodities, or other securities. ETFs are traded on stock exchanges similar to individual stocks, which allows investors to buy and sell shares throughout the trading day at market prices.ETFs are designed to track the performance of a specific index, sector, or asset class, often providing diversification for investors by pooling their money into a broad range of investments. This can reduce risk compared to investing in single securities.Typically, ETFs have lower expense ratios compared to mutual funds, making them a cost-effective investment option. They also offer liquidity, transparency, and flexibility, allowing investors to utilize various strategies, such as short selling or buying on margin.In summary, an ETF is a versatile financial instrument that combines features of both mutual funds and stocks, providing investors with access to a diversified portfolio of assets through trading on public exchanges.