Exchange Traded Fund (ETF)
- Can be very broad or very narrow in scope.
- Provide diversification
- Have low annual fees compared to mutual funds
- Most seek to match their benchmark – not beat their benchmark
- Some ETFs enable investors to gain exposure in markets they cannot reach directly
- Trade just like a stock
- Are an easy way to gain exposure to an industry or sector that you like, while not placing a large bet on one company.