Education

What is an ETF?

An exchange traded fund (ETF) is a basket of securities—such as stocks, bonds, currencies or commodities—that can be bought and sold in a single trade on an exchange. They generally track the performance of an index, less fees, and offer targeted exposure to a specific market segment, such as an asset class, geography, sector, or investment theme.                                                                                                                       

In essence, ETFs are funds that trade like stocks with the diversification benefits of mutual funds. In one trade, they can offer diversified, low-cost, transparent and tax-efficient exposure to companies across the globe. 


What Are The Benefits of ETFs?


Understanding the benefits of ETFs is an important step toward determining whether ETFs can be an appropriate choice for your portfolio.


Target Exposure


Lower Expense Ratios


Increased Diversification


Added Liquidity


Tax Efficiency


Flexible Trading


Increased Transparency


There are risks associated with investing in ETFs. Before deciding whether to acquire or continue to hold an ETF you should read the product disclosure document for a full list of all risks.