Learning trading/investing together part 4: ETF(Exchange-traded fund) Exchange traded funds(ETFs) What are ETFs? Exchange traded funds(ETFs ) are investment funds listed and traded on an exchange They aim to track the performance of an index and provide investors access to a range of market and asset classes Buying and selling is the same as that of a stock and can be transacted through any broker Benefits of ETF

Diversification Investors achieve diversification in one single transaction with minimum investment versus having to build a similar portfolio by purchasing individual stock, bonds or commodities which could require a huge investment outlay Cost-effectiveness
The cost of investing in ETFs are generally lower than actively managed funds(for example, Units Trusts) in the same markets of assets AccessibilityETFs offer access to a variety of local and global markets, as well as asset classes, both broad and specific, which may be inaccessible...