ETF

An Exchange Traded Fund (ETF) is a type of investment fund that tracks the performance of an index or a “basket” of securities. They combine elements of regular equities and mutual funds. Similar to a mutual fund, an ETF is a pooled investment vehicle that grants investors ownership of a professionally managed, diversified portfolio of investments. Like a conventional stock, an ETF trades on an exchange and can be easily sold for cash. Because of their pooled investment strategy, ETFs provide investors with the opportunity to diversify their investments at relatively lower costs and gain exposure to different asset classes.