ETF Definition: What is an Exchange-Traded Fund?

By Ben Broadwater Exchange-traded funds (ETFs) have become extremely popular in recent years. With more than 5,000 ETFs trading globally, you can assemble a portfolio of ETFs that invests in almost anything, anywhere. Continue reading to see a full ETF definition. But first, here is a brief summary of the benefits that ETFs provide:

On average, ETFs have lower maintenance fees than mutual funds.
You can buy ETFs at any time throughout the trading day, just like common stocks.
They are typically less risky than individual stocks.
investment areas including bonds, currencies, equities, commodities and real estate.
ETFs have a lower capital gains tax and thus are …read more

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