exchange-traded funds

Exchange-traded funds (ETFs) are investment funds that are traded on stock exchanges, similar to individual stocks. An ETF holds a collection of assets, such as stocks, bonds, or commodities, and its value fluctuates throughout the trading day based on market demand. Investors buy shares of the ETF, which allows them to gain exposure to a diversified portfolio without having to purchase each asset separately. ETFs offer flexibility, liquidity, and often lower fees compared to traditional mutual funds, making them an attractive option for both novice and experienced investors seeking diversification.