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ETFs

ETFs are exchange-traded funds, also known as "Exchange Traded Funds" in English. They are a type of investment fund that trades on a secondary market like individual shares. ETFs typically hold a variety of assets, such as stocks, bonds, or commodities, and often seek to track the performance of a specific index, such as the SP 500.


Definition:

ETFs offer several advantages for investors. For one, they offer an easy way to diversify your investment portfolio, since they can hold a variety of assets in a single fund. Additionally, by trading on a secondary market, ETFs allow investors to buy and sell shares in real time, unlike other mutual funds that only trade at the closing price of the day. ETFs also tend to have a low management fee compared to other mutual funds. However, it is important to study and understand ETFs before investing, as they may have risks and costs associated with them.