ETF is a type of security that involves a collection of securities, such as stocks that often tracks an underlying index although they can invest in any number of industry sectors or use various strategies.
They are similar to mutual funds, a key difference being that they are listed on exchanges, and ETF shares trade throughout the day just like an ordinary stock. One of the key advantages of ETF is its ability to allow an investor to partake passively in a broad basket of stocks, hence a popular choice for diversification. There are different types of ETFs which could include Bonds ETFs, indexed-stock ETFs, Industry-specific Stock ETFs, Commodity ETFs, Currency ETFs, and Inverse ETFs, etc....If you are just beginning your investment journey, it can be wise to lay a strong foundation for your portfolio by investing in exchange-traded funds (ETFs). In this article, we will be exploring 10 of the best performing ETFs which have consistently outperformed the S&P500 index over the past decade.
WHAT ARE ETFS?