Review:
Etfs (exchange Traded Funds)
overall review score: 4.5
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score is between 0 and 5
Exchange-traded funds (ETFs) are investment funds traded on stock exchanges, similar to stocks. They hold assets such as stocks, commodities, or bonds and typically have lower fees than mutual funds.
Key Features
- Diversification
- Liquidity
- Low expense ratios
- Tax efficiency
Pros
- Easy diversification of portfolio
- Intraday trading
- Lower fees compared to mutual funds
Cons
- Possible tracking error compared to index funds
- Volatility in market can impact ETF prices