EXCHANGE TRADED FUND (ETF).

An Exchange Traded Fund (ETF) is a type of pooled investment security that operates much like a mutual
fund.

Typically, ETFs will track a particular Index sector, commodity or other assets but unlike Mutual Funds,
ETFs can be purchased or sold on a stock Exchange the same way that a regular stock can.

 An ETF is a basket of securities that trades on an exchange just like a stock does.
 ETF share prices fluctuate all day as the ETF is bought and sold. This is different from Mutual
Funds which only trade once a day after the market closes.
 An ETF can contain all types of investments, including stocks, commodities or bonds.
 ETFs offer lower expense ratios and fewer broker commissions than buying stocks individually.

Understanding an ETF.

An ETF is called an Exchange Traded Fund because its traded on an Exchange just like stocks are.
The price of an ETF’s shares will change throughout the trading day as the shares are bought and sold
on the market. This is unlike Mutual Funds which are not traded on an exchange, and which trade
only once per day after the markets close.Additionally, ETFs tend to be more cost effective and more
liquid compared to Mutual Funds.

An ETF holds multiple underlying assets rather than only one like a stock does. Because there are
multiple assets within an ETF, they can be a popular choice for diversification.

ETFs can thus contain many types of investments including stocks, commodities, bonds or a mixture
of investment types.