Exchange-Traded Fund

Exchange-traded funds (ETFs) are passively managed investment funds that are traded on stock exchanges.

ETFs are similar to index funds in that the goal of an ETF is to accurately reproduce developments in an index. For example, an ETF based on the SMI index will invest in the stocks that are tracked by that index, and in the same proportions.

As an investor, ETFs make it easy to diversify your investment portfolio. You buy shares in the fund, and the fund then invests your money in numerous stocks or other assets.

Another benefit of ETFs is their low cost: they are usually much cheaper than actively managed investment funds because they employ a passive management strategy.

Find out where you can invest in ETFs at the lowest possible cost here.

More information:
Trading comparison tool
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