Home Finance What is an ETF?

What is an ETF?

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An exchange-traded fund (ETF) is a diversified set of assets (such as a mutual fund) that is publicly traded (such as a stock). ETFs are a simple, inexpensive, and cost-efficient way to invest.

What are the advantages of ETFs?

Price, convenience, and variety are some of the reasons to consider using exchange-traded funds (ETFs).
Flexibility
ETFs are a valid instrument both for the core of the portfolio and for more tactical investments.
Cost efficient
ETFs tend to have less management fees than funds and the costs are easy to calculate.
Diversification
ETFs instantly provide a source of exposure to the returns of various securities.
Transparency
ETFs show every security in the fund so you know exactly what you are invested in.
Liquidity
ETFs are publicly traded and can be traded at any time during market hours.
Access
ETFs allow immediate access to international markets.

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