What is an ETF

ETF means exchange-traded fund. It’s a collection of different types of investments put together in a single entity. You buy and sell ETF on exchange through a broker, just like stocks. They are similar to mutual funds, but there are important differences.

1. You need less money to invest in ETF shares (most trade for $100 or less).
2. ETF tend to charge lower management fees.
3. You can trade ETF just like stocks during the trading day. Instead, you’re able to buy or sell mutual funds shares only once per day at the closure.