What are NASDAQ Exchange-Traded Funds (ETFs)?

An Exchange-Traded Fund (ETF) is a basket of securities (such as stocks) designed to track the performance of a specific index. In the case of NASDAQ-traded funds, they aim to track the performance of the NASDAQ index (often the NASDAQ 100). When you buy a share in a NASDAQ-traded fund, you are buying a small stake in all the companies that make up the index, providing you with instant diversification for your investments.

Why do investors prefer NASDAQ-traded funds?

Exposure to technology and growth companies: These funds provide an easy and efficient way to gain exposure to the largest technology and growth companies in the United States and the world.

Diversification: Instead of buying individual stocks, ETFs allow you to diversify and reduce the risks associated with investing in a single stock.

Liquidity: ETFs trade on exchanges just like stocks, which means you can buy and sell them throughout the trading day at market prices, unlike mutual funds that are priced at the end of the day.