An exchange-traded fund (ETF) is a type of pooled investment
security that operates much like a mutual fund.
Buying A Basket Of Shares Or Assets
Exchange traded funds (ETFs) are a low-cost way to earn a return
similar to an index or a commodity.
They can also help to diversify your investments.
Physically-Backed ETF
Invests in all the in the index or a sample of the securities in the index.
Synthetic ETF
Hold some of the underlying assets and use to copy the movements of an index or asset.
Flexibility
Because they're traded on major exchanges, they're typically as easy as stocks to buy and sell.
Why trade exchange-traded funds (ETFs)?
ETFs combine the ease of stock trading with potential diversification. They are baskets of stocks and bonds, many of which are built to track well-known market indexes like the S&P 500
Index-Based ETFs
Most ETFs trading in the marketplace are index-based ETFs. These ETFs seek to track a securities index like the S&P 500 stock index and generally invest primarily in the component securities of the index.
One-stop, lower-cost diversification
Basket of equities, fixed income, or commodities.
Flexibility to buy and sell quickly just like stocks
24x5 trading on a select group of widely traded ETFs