What is an exchange traded fund (ETF)?

An exchange traded fund, or ETF, is a basket of investments like stocks or bonds. Exchange traded funds let you invest in lots of securities all at once, and ETFs often have lower fees than other types of funds. ETFs are traded more easily too. But like any financial product, ETFs aren’t a one-size-fits-all solution.

What are ETFs & how do they work?

Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.

What is a dividend ETF?

A dividend ETF is an exchange-traded fund (ETF) designed to invest in a basket of dividend-paying stocks, which is an income-investing strategy that provides income via stocks dividends. What Is the Grayscale Bitcoin Trust? Who Owns Vanguard Group? ETFs vs. Index Mutual Funds: What's the Difference? How Are ETF Fees Deducted?

What is an example of an ETF?

For example, some of these ETFs may follow a stock index that contains only tech stocks, large companies, or mid-cap stocks. The original ticker symbol for the Nasdaq 100 Trust is known as QQQQ, an ETF that trades on the Nasdaq exchange.