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, and is traded on stock exchanges, similar to individual stocks. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class.They offer investors an easy way to invest in a diversified portfolio with typically lower fees compared to mutual funds. The price of an ETF fluctuates throughout the trading day based on supply and demand, making them more liquid than traditional mutual funds that are only traded at the end of the day.ETFs can be bought and sold through brokerage accounts, and they provide investors with the ability to gain exposure to various markets and investment strategies while maintaining the flexibility to trade them as easily as stocks. They are favored for their transparency, tax efficiency, and flexibility in investment strategies.