Investments in ETFs

With an ETF, or Exchange Traded Fund, investors can buy several stocks or bonds in one package. The money invested in an ETF is used to fund all the assets it contains. For example, if you buy an ETF for the S&P 500, your money will be invested in the 500 companies it contains. 

Advantages and disadvantages of investing in ETFs.

ETFs provide access to various stocks, bonds, and other assets at a minimal cost. Such investments help diversify risks; also, the set of stocks included in an ETF is more liquid than mutual funds.

The disadvantages of such investments are a rather low rate of return and a service fee - this is the price for the minimal risk.

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