An exchange-trade fund or ETF is a basket of securities that tracks a particular index, bonds, commodity, or asset class. First created in 1993, ETFs have grown to over 2,100 funds available today just in the U.S., and over 6,000 funds worldwide containing over $4.5 trillion in assets.
ETFs have become very popular since they’ve become available. They are attractive to many investors because of their low costs, diversification, tax efficiency, and ability to be traded just like stocks. Read more to see if ETFs are a suitable investment for you.