An ETF actually works like a mutual fund. In fact, ETFs track a specific index, sector or commodity and, unlike mutual funds, they also offer the opportunity to buy or sell on the stock exchange just like selling stocks.
They are seen as a low-risk trading instrument. In addition, ETFs protect the trader from the excessive expenses of buying individual stocks. The reason they are called exchange-traded funds is because they are traded like stocks on the stock exchange.
Since there are more than one asset in ETFs, it is a prominent option for traders looking for diversity.
Please Note:
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