What is an Exchange Traded Funds (ETFs)?
An exchange-traded fund (ETFs) is a financial security that tracks a particular index and is traded on a stock exchange. ETFs can contain stocks, bonds, commodities or a mixture of these investment types.
Advantages
Diversification
ETF gives you a more diverse portfolio. Can explore a broader market for stocks, bonds or commodities.
Transparency
The price for ETFs can be found by anyone with internet access and the fund holdings are disclosed to the public each day.
Tax Benefits
Flexible trading and better tax efficiency in taxable accounts.
An Exchange-traded fund (ETFs) is for both institutional and individual investors and is one of the most popular investment vehicles. It offers diversification in the portfolio, transparency, trading, tax benefits and an arbitrage option.
Source: Mackenzie Investments, Investopedia, Nerdwallet, CI Global Asset Management
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