Exchange-Traded Funds (ETFs) are investment vehicles traded on exchanges. Unlike mutual funds, lithium americas forecast ETFs trade throughout the day.
**How ETFs work**
– ETFs hold baskets of securities.
– Offer instant diversification.
– ETFs can be passive or active.
**Popular ETFs**
– One of the largest in the world.
– Technology-heavy exposure.
– Broad-based investing.
– iShares MSCI Emerging Markets ETF (EEM).
**Benefits of ETFs**
– Cost-efficient investing.
– Reduces single-stock risk.
– Easy to buy and sell.
**Risks of ETFs**
– Market risk still applies.
– Especially in niche ETFs.
– Harder to beat markets.
**Conclusion**
ETFs are a cornerstone of passive investing. With SPY, QQQ, VTI, and EEM, investors build resilient portfolios.
