Exchange-Traded Fund (ETF)
What is Exchange-Traded Fund?
A fund that holds a basket of assets and trades on an exchange like a stock.
Understanding Exchange-Traded Fund
An ETF pools investor money into a portfolio, often one that tracks an index. Its shares trade throughout the day at market prices.
ETFs usually have lower costs and better tax efficiency than actively managed mutual funds.
FAQ
ETF or mutual fund?
Both pool money. ETFs trade during the day and are often cheaper; mutual funds price once a day and can allow automatic investing in exact dollar amounts.