What is an Exchange Traded Fund (ETF)?

ETFs are a low-cost investment vehicle that is growing in popularity among investors. Many people compare ETFs to mutual funds as it’s another way to purchase multiple stocks at one time. However, there are some key differences that make ETFs unique. This video helps explain what an ETF is.

Video transcript

What is an ETF?

ETF stands for Exchange Traded Fund. They hold a collection of investments, such as stocks, commodities and bonds. As the name implies, ETFs trade on an exchange. ETFs are diversified. They replicate an index like the S&P 500. They are passively managed. This allows for lower fees than mutual funds.

Speak to a financial advisor to learn more.