An exchange-traded fund (ETF) is an investment fund that’s traded on a stock exchange, like a stock, but holds a basket of investments, like a mutual fund. Most ETFs track broad, well-established indices like the S&P 500. They tend to have much lower fees than traditional mutual funds.
We like ETFs because they’re a cheap and efficient way to build a diversified investment portfolio. They allow you to gain exposure to a variety of asset classes like bonds, equities, and real estate. Read about the ETFs we use here.