Investing In ETFs

Exchange Traded Funds

BFI: Business - Finance - Investments

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Exchange-traded funds, or ETFs, are a type of investment that allows you to buy a basket of securities with one single transaction. ETFs can offer diversification, low costs, tax efficiency, and easy access to various markets and strategies. Here we will explain what ETFs are, how they work, and how you can invest in them.

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What is an ETF?

An ETF is a collection of securities, such as stocks, bonds, commodities, or currencies, that tracks an underlying index, sector, theme, or asset class. For example, an S&P 500 ETF holds the 500 stocks that make up the S&P 500 index, a gold ETF holds physical gold or gold-related securities, and a clean energy ETF holds stocks of companies that produce or use renewable energy sources.

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