What is an ETF?

An ETF, or exchangetraded fund, is an investment vehicle that pools together the money of multiple investors to purchase a diversified portfolio of assets, such as stocks, bonds, or commodities. ETFs are traded on stock exchanges like individual stocks, and their prices fluctuate throughout the trading day. ETFs are designed to provide investors with exposure to a specific market or sector while offering the diversification benefits of a mutual fund. They are considered a relatively lowcost and taxefficient way to invest in a variety of asset classes.