Exchange-Traded Funds (ETFs)
Exchange-traded funds invest in a broad group of securities – such as stocks and bonds – but they trade throughout the day on an exchange like a stock.
Diversification. Because an ETF holds a basket of securities, it can potentially provide easy access to a broad number of securities.
Lower Cost. ETFs typically have lower expense ratios than mutual funds, closed-end funds and unit investment trusts.
Transparency. Most ETFs publish their holdings daily on their websites.
Trade Flexibility. ETFs allow investors to enter or exit positions any time trading is open. Limit orders, short selling and margin are available in using ETFs.
Learn More about ETFs, including everything from the basics to investing and trading strategies.
Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against loss, in a down market.