ETF

An ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, similar to individual stocks. It typically holds a diversified portfolio of assets such as stocks, bonds, or commodities. ETFs are designed to track the performance of a specific index or sector, providing investors with a way to gain exposure to a broad market or specific market segments without having to buy individual securities. They are popular for their liquidity, as they can be bought and sold throughout the trading day at market prices, as well as their generally lower expense ratios compared to mutual funds. Additionally, ETFs often offer tax efficiency due to their unique structure. They can be a useful investment vehicle for both individual and institutional investors looking to achieve diversification and liquidity in their investment portfolios.