#TRXETF An ETF (Exchange-Traded Fund) is a type of investment fund that is traded on stock exchanges, much like individual stocks. Here’s a simple breakdown:
What is an ETF?
Basket of Assets: ETFs typically hold a collection of assets like stocks, bonds, or commodities.
Traded Like a Stock: You can buy and sell ETFs during market hours at market prices.
Diversification: Since they often track indexes (like the S&P 500), they give you exposure to many securities in one purchase.
Lower Costs: Generally have lower fees than mutual funds due to passive management.
Types of ETFs:
Stock ETFs – Track a specific index or sector.
Bond ETFs – Invest in various bonds.
Commodity ETFs – Track commodities like gold or oil.
Thematic ETFs – Focus on trends like clean energy or AI.
Inverse/Leveraged ETFs – Higher risk, used for short-term strategies.
Why People Like ETFs:
Easy to trade
Instant diversification
Transparent holdings
Tax-efficient