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What is an ETF?


Philip Miller

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Hello Phillip, thank you for your question. ETF or an Exchange Traded Fund is a bundle of securities that can be bought or sold through brokerage firms on the stock exchange.

 

These funds have been created recently and their goal is to offer investors excellent quality products that will help them achieve their investing goals in a swift and a secure way.

 

ETFs may come in various forms, such as Market, Bond, Sector and Industry, Commodity, Style, Foreign Market, Inverse, Actively Managed, Exchange Traded Notes (ETNs), or as Alternative Investment ETFs.

 

The advantages of ETFs are that they are easy to trade, transparent, tax-efficient, and trading transactions.

 

The disadvantages of ETFs are that they can sometimes include tracking errors, illiquidity, higher trading costs, and delayed settlement dates.

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