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ETF
(Exchange-Traded Fund)
An ETF (Exchange-Traded Fund) is a basket of securities (stocks, bonds, commodities) that trades on exchanges like NYSE or NASDAQ, combining diversification with stock-like liquidity. Popular examples include SPY (S&P500 tracker) and QQQ (Nasdaq-100).
ETFs typically have lower fees than mutual funds (average 0.16% expense ratio) and offer tax efficiency via 'in-kind' creation/redemption. They cover sectors, themes (e.g., AI, clean energy), or strategies (inverse, leveraged). The SEC oversees ETFs, requiring daily transparency of holdings. Investors use ETFs for FIRE portfolios, hedging, or accessing niche markets like REITs or BTC futures. Global ETF assets surpassed $10 trillion in 2023.
ETFs typically have lower fees than mutual funds (average 0.16% expense ratio) and offer tax efficiency via 'in-kind' creation/redemption. They cover sectors, themes (e.g., AI, clean energy), or strategies (inverse, leveraged). The SEC oversees ETFs, requiring daily transparency of holdings. Investors use ETFs for FIRE portfolios, hedging, or accessing niche markets like REITs or BTC futures. Global ETF assets surpassed $10 trillion in 2023.