Exchange-Traded Funds (ETFs) are a flexible way to access global markets. They offer instant diversification.
**What is an ETF?**
An ETF is a fund tracking an index or merck stock sector that can be bought or sold anytime during the day. Examples include iShares MSCI Emerging Markets ETF (EEM).
**Benefits of ETFs**
– Exposure to hundreds of companies.
– Tax efficiency.
– Thematic ETFs for trends like AI or clean energy.
**Risks of ETFs**
– Market risk still applies.
– ETFs don’t always perfectly match their index.
– Narrow focus increases risk.
**Conclusion**
ETFs are a smart tool for building portfolios. For long-term investors, combining U.S. market ETFs creates balance, growth, and global exposure.
