Exchange-traded funds (ETFs) are essentially a collection of financial assets such as stocks, bonds, or other assets that are exchanged on a stock market. They give investors access to a variety of assets, industries, and places, frequently at a lesser cost than mutual funds. Diversification, transparency, liquidity, and cost-effectiveness are all advantages of ETFs. ETFs can give investors access to specialized or challenging markets, such emerging markets or particular industries like technology or healthcare. They are also very liquid, allowing investors to purchase and sell shares at any time of day, and long-term investors find them to be a desirable option due to their low fees.
Role of exchange-traded funds (ETFs) in an investment portfolio.
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