Economics Stock Market Questions
An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, with shares that are traded on stock exchanges. It is designed to track the performance of a specific index, sector, commodity, or asset class. ETFs offer investors the opportunity to diversify their portfolios and gain exposure to a wide range of assets, similar to mutual funds. However, unlike mutual funds, ETFs can be bought and sold throughout the trading day at market prices, providing investors with flexibility and liquidity.