An ETF, or Exchange-Traded Fund, is a type of investment fund that’s traded on stock exchanges, much like individual stocks.
It’s a basket of various assets, such as stocks, bonds, or commodities, that aims to replicate the performance of a specific index or sector. ETFs offer the diversification benefits of mutual funds but with the added perk of real-time trading and generally lower fees.
If you’re interested in the tech industry but don’t want to risk investing in a single company, you could buy shares of a tech-focused ETF, which would give you exposure to a range of tech companies. That way, you’re spreading the risk while still targeting a specific market sector.
You can find ETF’s for almost any industry, asset class, or investment strategy.
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