ETFs, or Exchange-Traded Funds, are a popular way for beginners how to buy Palantir Technologies invest in many stocks at once.
What Is an ETF?
- An ETF is like a basket containing many stocks, bonds, or assets.
- It trades on exchanges just like individual company shares.
- Examples: SPDR S&P 500 ETF includes Apple, Amazon, Microsoft, Google.
Benefits of ETFs
- Diversification You own a piece of many companies at once.
- Low Cost ETFs usually have low fees compared to mutual funds.
- Flexibility They can be bought and sold anytime during market hours.
- Variety ETFs exist for sectors like tech, healthcare, energy, real estate.
Examples for Beginners:
- Tech ETF: includes companies like Tesla, Nvidia, Meta.
- Healthcare ETF: holds stocks such as Pfizer, Moderna, Johnson & Johnson.
- International ETF: gives exposure to European and Asian firms.
For someone new to investing, ETFs are a smart way to start building a balanced portfolio without picking individual stocks.