ETFs - What are ETFs in Stock Market.

What is an ETF?
ETF stands for Exchange-Traded Fund. It's essentially a basket of securities (stocks, bonds, commodities, etc.) that can be bought and sold on a stock exchange just like an individual stock.
Difference between ETFs and other shares
 * Individual Stocks: Represent ownership in a single company. Price fluctuates based on company performance.
 * Mutual Funds: A pool of money invested in various securities. Shares are bought and sold at the end of the trading day, based on the fund's net asset value (NAV).
 * ETFs: A basket of securities that trades like a stock. Price fluctuates throughout the day based on supply and demand.
Advantages of ETFs over other shares
 * Diversification: ETFs often hold many securities, reducing risk.
 * Low Costs: Generally have lower expense ratios compared to mutual funds.
 * Trading Flexibility: Can be bought and sold throughout the trading day.
 * Tax Efficiency: Often structured to minimize tax implications.
 * Accessibility: Lower minimum investment amounts compared to some mutual funds.
Examples of popular ETFs
 * S&P 500 ETFs: Track the performance of the S&P 500 index, which includes 500 of the largest US companies. Examples: SPY, VOO, IVV.
 * Nasdaq-100 ETFs: Track the performance of the Nasdaq-100 index, which includes 100 of the largest non-financial companies on the Nasdaq. Examples: QQQ, QQQM.
 * Bond ETFs: Invest in various bonds, offering exposure to the bond market. Examples: BND, AGG.
 * International ETFs: Provide exposure to foreign markets. Examples: VTI, ACWI.
 * Thematic ETFs: Focus on specific sectors or trends, such as technology, healthcare, or renewable energy.