What is an exchange-traded fund (ETF)?

Fidelity An exchange-traded fund (ETF) is a basket of securities you buy or sell through a brokerage firm on a stock exchange. 2,955 U.S.-listed ETFs/ETPs with assets of $6.64 trillion is the data as of 5/31/22. Exchange-traded funds are one of the most important and valuable products created for individual investors in recent years.

How do I start investing in ETFs?

To begin investing in ETFs, investors will need a trading account, funds to invest, and some knowledge of what ETFs match their investing goals. The requirements for Investing in exchange-traded funds (ETFs) aren't much different than for buying company stocks.

What are ETFs & how do they work?

ETFs combine features of both mutual funds and stocks. They are listed on stock exchanges and can be bought and sold throughout the trading day like individual stocks. ETFs typically track a specific market index, sector, commodity, or other asset class, providing investors with exposure to a diverse range of securities in a single investment.