ETF (Exchange Traded Fund) is a financial product that works like a mix between a stock and an investment fund.

👉 In summary:

It is a basket of assets (stocks, bonds, commodities, cryptos, etc.) that replicates the performance of an index or a sector.

It is traded on the stock exchange like a stock: you can buy or sell it at any time during the day.

It is often cheaper than a traditional fund (lower management fees).

Concrete example:

An S&P 500 ETF groups the 500 largest American companies.

→ If you buy 1 share of this ETF, it's like owning a small piece of each of these 500 companies.

A gold ETF tracks the price of gold.

A Bitcoin ETF tracks the price of Bitcoin.

Advantages:

✅ Immediate diversification (you do not depend on a single stock).

✅ Reduced fees.

✅ Accessible (you can invest with little money).

✅ Liquid (easy to buy and sell).

Disadvantages:

❌ You do not choose the companies individually.

❌ Some ETFs can be complex (leveraged, inverse
).

❌ You depend on the index (if the whole market drops, your ETF does too).

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