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Exchange-Traded Funds
WHAT IS AN EXCHANGE-TRADED FUND (ETF)?
An ETF is a type of pooled-investment security that tracks a specific market index, sector, commodity, or other asset. ETFs behave similarly to a stock being traded in a stock exchange; experiencing fluctuations throughout the day and being bought and sold at any time during trading hours, in contrast to mutual funds that may only be traded after the market closes.
WHY INVEST IN AN EXCHANGE-TRADED FUND?
ETFs are a good option for investors that seek high liquidity and low management fees, and cost-efficiency. Many ETFs are passively managed and simply track a market index, in such cases the fee costs are minimal and highly cost efficient compared to buying individual stocks.
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