Exchange Traded Funds (ETFs) are investment funds that trade on stock exchanges, similar to individual stocks. They are designed to track the performance of a specific index, sector, commodity, or asset class.
ETFs typically hold a basket of assets, such as stocks, bonds, or commodities, providing investors with diversified exposure to a particular market or sector.Investors buy shares or units of the ETF, which represent a proportionate interest in the underlying assets.
They are listed and traded on stock exchanges, making them accessible to individual and institutional investors alike.
ETFs offer a flexible, cost effective, and diversified investment option, making them a popular choice among investors looking to gain exposure to a broad range of markets and asset classes. They are popular among passive investors who seek to replicate the performance of an index without active management and are often used for long term investment strategies due to their low costs and diversification benefits.
