Exchange Traded Funds

An ETF is essentially an investment wrapper, merely a vehicle. It’s a basket of securities that offers diversified access to an area of the market. An ETF can invest in everything from stocks, to bonds, commodities, currencies, as well as derivatives, or a mix of any of these different assets. An equity ETF, for example, is a portfolio of several stocks from different companies; a Treasury ETF is a portfolio of several bonds, and so on. ETFs are structured much like a mutual fund except that they list and trade on a stock exchange under a single ticker, like a single stock.