Tag Archives: Exchange Traded Funds

The Basics of ETFs

Exchange Traded Funds

ETFs, or Exchange Traded Funds, have recently gained popularity among traders and investors. ETFs are similar to mutual funds, allowing you to invest in a basket of assets. Still, they offer many advantages over traditional investments, making them attractive to those seeking passive income or diversification.

This article will discuss the basics of ETFs and explain how they work so you can decide if they’re suitable for your portfolio.

What is an ETF?

An exchange-traded fund (ETF) is an investment product that tracks an index or group of securities like stocks, bonds, or commodities. An ETF combines the features of a stock and a mutual fund, allowing investors to purchase shares of the ETF and giving them access to a portfolio of securities. The ETF trades like a stock on an exchange, and its value fluctuates during trading hours.

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