ETF (Exchange-Traded Fund)

An ETF (Exchange-Traded Fund) is an investment vehicle that pools money from many investors to buy a diversified mix of assets like stocks, bonds, or commodities. It is traded on stock exchanges throughout the day, similar to individual stocks, allowing for liquidity and flexibility. ETFs offer a way to invest in a broad market or specific sectors without purchasing multiple individual securities, providing diversification and often lower fees. They are popular for their convenience, transparency, and ability to track the performance of indices or asset classes efficiently.