Karan Goyal
KF Rookie
ETFs, or Exchange-Traded Funds, are investment funds that are traded on stock exchanges, much like individual stocks. They hold assets such as stocks, bonds, commodities, or a combination of assets and typically aim to replicate the performance of a specific index. ETFs offer investors exposure to a diversified portfolio of securities in a single investment, similar to mutual funds. However, unlike mutual funds, ETFs can be bought and sold throughout the trading day at market prices, providing intraday trading flexibility. ETFs also tend to have lower expense ratios compared to mutual funds and may offer tax advantages due to their unique structure. Overall, ETFs provide investors with a convenient, cost-effective way to diversify their investments across various asset classes and sectors.
