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What is an ETF & how does it work?

WHAT IS AN ETF? Exchange-traded-funds, or ETFs, are similar to mutual funds in that they invest in a basket of securities, such as stocks, bonds, or other asset classes. But unlike mutual funds and similar to a stock, ETFs can be traded whenever the markets are open.

What is an exchange traded fund (ETF)?

Her work has appeared in The New York Times, The Washington Post, MSN, Yahoo Finance, MarketWatch and others. See full bio. An exchange traded fund, or ETF, is a basket of securities — stocks, bonds, commodities or a mix — that offers diversification and easy trading.

What are exchange-traded funds?

Exchange-traded funds are a type of investment fund that offers the best attributes of two popular assets: They have the diversification benefits of mutual funds while mimicking the ease with which stocks are traded. An exchange-traded fund (ETF) is a basket of investments like stocks or bonds.

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