Exchange-Traded Funds (ETFs) are investment funds that trade on stock exchanges and track the performance of specific indices, sectors, or asset classes. They offer diversification, lower costs, liquidity, and transparency. ETFs provide flexibility to invest in various asset classes, are tax-efficient, accessible to all investors, and some follow a passive investment approach. However, investors should consider their goals, risk tolerance, and research underlying assets before investing. Seeking advice from a financial advisor is advisable, as all investments carry risks.
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