ETF

An Exchange-Traded Fund (ETF) pools together many securities—stocks, bonds, commodities, or a mix—into a single tradable instrument. You can buy and sell an ETF on a stock exchange throughout the trading day, just like an individual stock.

Most ETFs are passively managed, meaning they track the composition of a market index rather than trying to beat it. This passive approach keeps management fees very low—often a fraction of a percent per year—making ETFs one of the most cost-efficient investment vehicles available.

ETFs combine the diversification of a mutual fund with the flexibility of a stock. They are available in thousands of varieties covering broad markets, specific sectors, countries, asset classes, and investment themes, making them suitable building blocks for nearly any portfolio strategy.