Understanding ETFs: Your Guide to Exchange-Traded Funds
Welcome to the world of exchange-traded funds (ETFs)! They have become incredibly popular over the last few decades. But what exactly are they? 🤔
An ETF is a type of investment fund and exchange-traded product that holds assets such as stocks, commodities, or bonds. ETFs are traded on stock exchanges, much like stocks.
Why Invest in ETFs?
- 📈 Diversification: ETFs provide an easy way to diversify an investment portfolio.
- 💲 Cost-Effective: Generally, ETFs have lower fees compared to mutual funds.
- 📊 Liquidity: They can be bought and sold easily during market hours.
Popular ETF Categories
Explore the different ETF categories to find one that fits your investment strategy: