Review:
Etfs
overall review score: 4.5
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score is between 0 and 5
Exchange-traded funds (ETFs) are investment funds that are traded on stock exchanges, much like stocks. They hold assets such as stocks, commodities, or bonds and provide investors with diversified exposure to a particular asset class or market index.
Key Features
- Diversification
- Liquidity
- Low cost
- Transparency
- Tax efficiency
Pros
- Easy way to diversify portfolio
- Lower expense ratios compared to mutual funds
- Can be bought and sold throughout the trading day
Cons
- May incur brokerage fees
- Possible tracking error compared to benchmark index
- Not all ETFs are equally liquid