Beginner’s Guide to ETFs
Learn the basics of ETFs and how they can help you achieve your financial goals.
Get CalculatingWhat Are ETFs?
Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges, similar to stocks. ETFs offer an easy way to diversify your investments by pooling money to buy a variety of assets such as stocks, bonds, or commodities.
Advantages of ETFs
- Diversification: Invest in a variety of assets through a single ETF.
- Affordability: Lower fees compared to mutual funds.
- Liquidity: Trade ETFs throughout the day like stocks.
- Transparency: Know exactly what the fund holds.
How Do ETFs Compare to Other Investments?
| Feature | ETFs | Other Investments |
|---|---|---|
| Fees | Low | High (e.g., mutual funds) |
| Diversification | High | Varies |
| Trading Flexibility | High | Limited |