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What is ETF?

Have you heard about ETFs, but aren’t really sure what they are? Then you’ve come to the right place. This is where you learn the basics about ETFs and how they can benefit your portfolio. Exchange Traded Funds are an up-and-coming investment vehicle because of their advantages of other investments such as mutual funds. They have lower cost structures, are easy to trade and have a lesser impact on your tax bill. So if you’re ready intrigued, here’s the information you need to include ETFs in your investment strategy. Exchange Traded Funds, also known as ETFs, are mini-portfolios of securities and derivatives that track an asset like an index or commodity. Unlike mutual funds or index baskets, you don’t have to make multiple transactions in order to achieve a market price. With ETFs it’s one trade, one price.

Are you curious to know what ETF are? Do you want to find out more information about them? After you read this, I am sure you would gain more knowledge about ETF and its use in making your portfolio more lucrative. This is a platform where you can learn about the basics of ETF. ETF stands for Exchange Traded Funds which is an investment tool and is currently in great demand. The reason behind this is its advantage of investments such as mutual funds. Some of the features of ETF which makes them more lucrative than other tools are that they are easy to trade, have a lower cost structure; and above all the impact of tax is lesser. So if, you are now convinced then you must make ETF a part of your investment portfolio. ETF also consist of securities and derivatives that help in tracking an asset in the form of an index. They have an advantage over mutual fund or index bracket, and that the investor does not have to carry out numerous transactions in case of ETF. ETF therefore, helps in reducing complexities while trading.

 

Shuchi Bhatnagar
I am a full time software professional who loves to write blogs as well as content for social media websites. I try to squeeze in my writing program whenever time is available . Writing not only provides me with a platform where I can express what I feel with full integrity and dedication but also is a great medium to build on your inter personal skills. I believe every little piece of writing is important if it moves someone’s life in a positive way.

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