Macroeconomics & Investing · Entry 21 of 71

What is ETF?

Instant diversification traded right on the stock exchange

Core Definition

An ETF (Exchange Traded Fund) is a type of investment fund that holds a collection of underlying assets, such as stocks, bonds, or commodities. ETFs trade like individual stocks on stock exchanges.

Core Advantages

• Provides instant, low-cost diversification.
• Highly liquid and easily tradeable throughout the market session.