An exchange-traded fund, or ETF, is an investment vehicle that seeks to provide the returns of a particular index. ETFs are traded like stocks on an exchange and can be bought in the same way as shares in a company. ETFs may be used to diversify investments for individuals who do not want to put all their eggs in one basket when it comes to investing.

Exchange-traded funds (ETFs) invest in a portfolio of assets, often stocks, based on an underlying index. ETFs are similar to mutual funds in certain respects, but they are distinguished by their listing on exchanges and their ability to be traded throughout the day, just like regular stocks. In recent years, ETFs have grown in popularity among investors for two primary reasons. In addition, they offer a convenient entry point to a wide range of sectors, industries, and strategies. Additionally, they tend to mitigate a good deal of the risks associated with investing in individual stocks.

Exchange-traded funds (ETFs) are a type of investment that are available to the individual investor. ETFs are bought and sold on an exchange, like stocks, but are not stocks themselves. Investors can easily buy or sell ETFs at any time during the day, which is much easier than regular investing processes. The vast majority of ETFs track an index which it is made up of many different stocks.

ETFs are basically when you can buy several securities. Such investments which comprise different types such as stocks and bonds. ETFs are considered advantageous to maintain a diversified portfolio.