An ETF, short for Exchange-Traded Fund, is a type of investment fund that holds a collection of assets, like stocks, bonds, or commodities. They trade on stock exchanges just like any other stock.
ETFs are a simple and cost-effective way to diversify your portfolio. That’s done by tracking the performance of an index (like the S&P 500), a sector, or a special theme.
ETFs are known for being flexible, liquid, and often cheaper than mutual funds. This makes them a great fit for investors of all levels, from those just starting out to the more experienced.