What are ETFs & how do they work?

ETFs are collections of assets, often stocks, bonds or a mix of the two. A single ETF might own dozens, sometimes hundreds, of stocks. So by owning a single share of the ETF, investors can own an indirect stake in all the stocks (or other assets) held by the fund. It’s a great (and often inexpensive) way to buy a collection of stocks.

What are the different types of ETFs?

Types of ETFs. ETFs: Stock portfolios in disguise. ETFs in retirement portfolios. Advantages of individual stocks. Personalized and direct indexing. Market history repeating itself. An ETF allows an investor to capture the returns of the entire market.

Why should you invest in ETFs?

With stocks, you invest in just one company at a time. But with ETFs, you can buy many different kinds of assets at once. ETFs can invest in stocks, bonds, real estate, cryptocurrencies, precious metals and more. Some ETFs contain a mix of securities so you can get exposure to different assets with a single investment. 2. Diversification