What are ETFs?
Exchange-traded funds, or ETFs, can contain hundreds or thousands of stocks, making it easy to diversify your investment portfolio. Learn how ETFs work.
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Exchange-traded funds, or ETFs, can contain hundreds or thousands of stocks, making it easy to diversify your investment portfolio. Learn how ETFs work.
An exchange-traded fund (ETF) is a security that tracks an index, sector or commodity. For example, an ETF that tracks the S&P 500 holds shares in all (or a representative sample of) the companies listed on that index.
Shares of ETFs are bought and sold on a stock exchange like regular stocks, and they can include stocks, bonds, commodities or a mix of these. The appeal of ETFs includes low purchase fees, low expense ratios, low or no commission fees, access to various industries through one ETF, and the ability to easily build a diverse portfolio.
Example: “Should I invest in mutual funds or ETFs?”
Watch: The Best ETFs in Canada
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