what is etf

An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product that is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, futures contracts, and/or commodities such as gold bars. The list of assets that each ETF owns, as well as their weightings, is posted on the website of the issuer daily, or quarterly in the case of active non-transparent ETFs. ETFs can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies. ETFs generally hold a collection of stocks, bonds, or other securities in one fund or have exposure to a single stock or bond through a single-security ETF. ETFs provide an affordable way to access a wide variety of asset classes. ETFs are bought and sold like a common stock on a stock exchange, and their share prices fluctuate all day as the ETF is bought and sold. ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. ETFs provide instant diversification by investing in many assets at once. ETFs often have lower fees than other types of funds.