Equities
ETF
ETFs bundle many holdings, such as all the stocks in an index, into one security that can be bought and sold throughout the trading day. This makes them a convenient, low-cost way to gain broad exposure.
Most ETFs track an index passively, giving investors instant diversification at a fraction of the cost of active funds. Others target specific sectors, themes, bonds, or commodities.
Because they trade intraday with tight spreads and offer tax efficiency, ETFs have become a cornerstone of modern portfolios for both long-term investors and active traders.
Example
Buying a single S&P 500 ETF gives an investor exposure to 500 large U.S. companies at once.
ETF — FAQ
What is ETF?
An exchange-traded fund (ETF) is a basket of securities that trades on an exchange like a stock, offering diversified exposure in a single, liquid investment.
Can you give an example of ETF?
Buying a single S&P 500 ETF gives an investor exposure to 500 large U.S. companies at once.
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