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An Exchange Traded Fund (ETF) is a type of security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. ETFs trade on an exchange, just like stocks, and experience price changes throughout the day as they are bought and sold. ETFs typically have lower fees and expenses than traditional mutual funds, making them an attractive investment option for many investors. ETFs also provide investors with the ability to diversify their portfolios, as they can invest in a variety of asset classes and sectors.
ETFs are regulated by the Securities and Exchange Commission (SEC) and are subject to the same rules and regulations as other securities. ETFs are also subject to market risk, meaning that their value can fluctuate with the market.
Some of the companies in the ETF market include Vanguard, BlackRock, State Street Global Advisors, Invesco, and Charles Schwab. Show Less Read more