The popularity of exchange-traded fundsis growing rapidly due to their low operating costs and the benefits they provide by helping investors increase their diversification. Beginning investors can use ETFs as an alternative to mutual funds or individual stocks to gain exposure to certain regions or sectors.
Typically, exchange-traded funds have been index funds, meaning they closely track an index such as the S&P 500. As the ETF market has grown, more have become available. Exchange-traded funds that invest in commodities, bonds or currencies can now be traded.
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