Exchange-Traded Fund – ETF
ETF is fund that tracks an index or a basket of assets, like an index fund, but can be traded on a market as common stock.
Those funds can be bought or sold like the common stocks, and therefore experiences price fluctuation during the day, unlike other funds, whose price are calculated day by day.
Investor needs a broker in order to purchase Exchange-Traded Fund, so he must pay a commission.
Because ETF tracks indexes, it has low operating and transaction costs, and also does not have investing minimum, so investors can buy as few as one ETF.
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