An exchange traded fund (ETF) looks like a mutual fund that tracks an index, a commodity or / a basket of assets such as an index fund, but trades like a stock on an exchange.
ETFs experience price changes throughout the day as they are bought & sold.
When you buy shares of an ETF, you are buying shares of a portfolio that tracks the yield & return of its native index.
The main difference between ETFs and other types of index funds is that ETFs do not try to outperform their corresponding index. But simply replicate its performance.
ETFs do not try to beat the market, they try to be the market.
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