Exchange-Traded Fund (ETF)

An exchange-traded fund (ETF) is a pooled investment vehicle that holds a collection of assets—such as stocks, bonds, or commodities—and trades on a stock exchange much like an individual stock. ETFs offer diversified exposure to a market, sector, or strategy, with share prices fluctuating throughout the trading day. They typically have lower expense ratios than mutual funds and provide investors with trading flexibility and liquidity.