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Exchange Traded Fund (ETF)
Explanation:
An Exchange Traded Fund (ETF) is an automated index funds designed to mimic the performance of a certain segment of the market. For example, there are ETFs that track the S&P 500, those that provide exposure to a particular sector รข?? such as retail or energy, and those that focus on companies of a certain size.
Our Thoughts:
ETFs are a great option for investors seeking access to the stock market without having to devote time, energy or money to identify the best individual companies to own. Many people prefer them to actively-managed mutual funds, as active managers have shown to inflate costs without providing any discernible benefits in terms of returns.