What is an ETF?
Benefits of ETFs
Lower fees
ETFs strip away the unnecessary layers of fees that typically plague other investment products like mutual funds.
Diversification
ETFs allow your portfolio to easily gain exposure to a wide range of different companies at once.
Dividends
If the stocks owned through the fund pay dividends, the money is typically paid out in cash to the investor of the ETF.
Get answers to frequently asked questions
ETFs (Exchange-Traded Funds) are a product that owns and manages its own basket of assets (stocks, bonds, commodities, etc.). Ownership of those assets is divided into individual shares, which you are able to purchase just like you would a stock. When you purchase shares of an ETF, you’re participating in the gains and losses of the underlying assets that are held within the ETF. If they have an overall increase in value, the value of individual shares will typically rise, and investors will earn a profit. And vice versa; if the assets have an overall decrease in value, individual shares drop in value, and investors incur a loss.
Yes, you can buy and hold any ETF that is listed on a designated stock exchange in a registered account.