Exchange-Traded Funds

An Exchange-Traded Fund (ETF) is an investment fund that pools money from multiple investors to invest in a diversified portfolio of assets, such as stocks, bonds, or other financial instruments. Traded on a stock exchange like a share, an ETF can be bought or sold throughout the day at its market price, which fluctuates in real time. It is generally passively managed, resulting in lower management fees compared to mutual funds. ETFs thus provide a low-cost investment solution with good diversification to help reduce risks.