What is an exchange-traded fund (ETF)?

Built like mutual funds, ETFs consist of a portfolio of investment products, but they trade like individual stocks on major stock exchanges and can be bought or sold at any time throughout the trading day.

Some of the potential benefits of ETFs include:

  • Low cost way to invest in the market and access a broad range of asset classes and investing themes
  • Remain liquid regardless of trading volume
  • Provide a tax-efficient structure with low turnover

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Last updated July 2, 2020