#ETFWatch An Exchange-Traded Fund (ETF) is a type of investment fund that holds a diversified portfolio of assets, such as stocks, bonds, or commodities, and trades on stock exchanges like individual stocks. ETFs offer investors an easy way to gain exposure to various markets while benefiting from diversification and liquidity. Unlike mutual funds, which are priced once a day, ETFs can be bought and sold throughout the trading day at market prices. They typically have lower expense ratios compared to actively managed funds, making them cost-effective. ETFs can track specific indexes, sectors, or strategies, allowing investors to choose funds based on their financial goals.