By Scott Krase via Iris.xyz
What is an ETF: 101
That is a simple question, but the problem is when you ask investors who are 50+, the reality is they don’t know and haven’t received the basic communication they desperately need from advisors.
ETFs (Exchanged Traded Funds) are very similar to mutual funds. ETFs typically represent a basket of securities known as pooled investment vehicles and trade on a stock exchange like individual stocks. Most ETFs are registered investment companies that offer investors a share in a professionally managed portfolio of securities, like stocks or bonds. That is also the primary difference between mutual funds and ETFs, the ETF has shares that can be bought and sold at ANY time throughout the trading day while mutual fund shares can only be bought and sold at the END of each trading day.
Like a stock
-Trading flexibility intraday on the exchange
-Long or short