Understanding ETFs and Why They Beat Mutual Funds as an Investment

Jeffrey Feldman and Andrew Hyman

Is there a low-cost, simple, easy to use, investment tool for buying into the trends of the future? Yes. It is the exchange traded fund, more popularly known as the ETF. An ETF is a security that trades on a stock exchange, made up of a basket of securities that track a particular index, such as the Dow Jones Industrial Average or the S&P 500.1 ETFs can track the performance of a particular group of stocks, including those in sectors, such as healthcare, green industry, and infrastructure. These funds allow investors to buy into an industry without the worries of buying a single stock. Unlike mutual funds, ETFs trade continuously throughout the ...

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