Review:
Exchange Traded Funds (etfs)
overall review score: 4.5
⭐⭐⭐⭐⭐
score is between 0 and 5
Exchange-traded funds (ETFs) are investment funds that are traded on stock exchanges, similar to individual stocks. They hold assets such as stocks, commodities, or bonds and provide investors with diversified exposure to a particular market or sector.
Key Features
- Liquidity
- Diversification
- Low expense ratios
- Transparency
Pros
- Easy access to diversified portfolios
- Lower costs compared to mutual funds
- Intraday trading and liquidity
Cons
- Potential for tracking error compared to the underlying index
- May experience price premiums or discounts to their net asset value