What is an ETF?

Exchange-traded funds (ETFs) offer the flexibility of stock trading along with portfolio diversification. An ETF is an index fund or trust that is listed on an exchange and can be traded intraday. This allows investors to buy or sell shares in the collective performance of an entire stock or bond portfolio as a single security.

ETFs can be categorized into three types:

1. Broad-based ETFs track a broad group of stocks, across different industries and sectors.

2. Industry sector ETFs track companies represented in related industries.

3. International sector ETFs track a group of stocks from a specific country or region.

Why should you consider investing in ETFs? They add the flexibility, ease, and liquidity of stock trading to the benefits of traditional index fund investing.