Like many investors, you may already have an existing portfolio of stocks or even real estate investment trusts (REITs). While these have a place in your portfolio, there is a type of investment that could further improve your portfolio – exchange traded funds (ETFs).  Think of an ETF as a basket of stocks, bonds or other asset class that you can buy or sell on an exchange, just like shares of a publicly traded company. ETFs are designed to track and replicate the performance of a market benchmark or index. With just one ETF, you are effectively investing into all the companies or securities within that index. Whether you want to build a portfolio that pays for your child’s education or funds your dream retirement, ETFs offer the following benefits that can help you achieve your goals. #1: Keep your costs low.  ETFs are a form of passive investing.