An exchange-traded fund (or ETF) is an investment vehicle traded on stock exchanges, much like stocks.
An ETF may track the performance of a broad index, like the S&P 500, or it may track a specific country, sector, or industry.
When buying and selling ETF, you have to pay the same commission to your broker that you'd pay on stock order.
Exchange-traded funds (ETF) are very important for any investor's portfolio, from the most sophisticated institutional money
managers to an investor who is just getting started.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, and also buy on margin.
Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund.
Buying and selling flexibility - ETFs can be bought and sold at current market prices at any time during the trading day, unlike mutual
funds which can only be traded at the end of the trading day.
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