If you are looking to invest, or are already invested, you may have come across Exchange-Traded Funds, commonly known as ETFs.
An ETF is a type of pooled investment fund that trades on stock exchanges, similar to individual stocks.
They will usually track an index, sector, commodity, or other assets, providing diversification within a single investment.
However, they can also be purchased or sold on a stock exchange the same way as a regular stock.
ETFs offer the benefits of low expense ratios, tax efficiency, and flexibility, as they can be bought and sold throughout the trading day at market prices.
They are particularly versatile for building diversified portfolios and can offer you to track almost anything from the price of an individual commodity to a large collection of securities.
Such flexibility enables you to build a more diversified portfolio, gaining exposure to various market segments and managing risk with relative ease and at a low cost.