What Is An ETF or Exchange Traded Fund

Lets understand in simple terms what are the exchange traded funds and why are they so much popular!

An ETF, or Exchange-Traded Fund, is like a mix of investments (like stocks, bonds, or commodities) that you can buy or sell on the stock exchange.

It lets you spread your money across different things easily, without buying each one separately. ETFs are traded just like stocks, and they’re popular because they’re affordable and simple to understand.

ETFs are an easy way for investors to diversify their investments across a variety of assets without the hassle of buying each one individually.

They’re as easy to buy and sell as stocks, offering flexibility and liquidity throughout the trading day at market prices.

These funds can follow different indices, industries, commodities, or investment approaches. For example, some ETFs track the performance of major indices like the S&P 500, specific sectors like technology or healthcare, or commodities like gold or oil.

With their low fees and tax efficiency, ETFs are a favored choice among investors.

Note. This is not a n investment advice. This video is only for educational learning purposes. Always, approach professionals for your investment advice goals.