ETFs are investment financial instruments, thanks to which traders can manage assets from different market sectors from the comfort of their accounts. ETFs consist of a pool of assets (commodities, stocks, bonds, and other assets), which are bought and sold as a single stock.
As a result, when buying an ETF share, an investor is getting a proportional percentage in the pool of several assets and investing in the entire segment of the market. The ETF market is growing and expanding. The projected annual growth is from 15% to 30%. When investing in ETFs, traders get excellent opportunities to diversify their investment portfolios.
Fund management companies charge fees for managing ETFs, which may include administrative costs and expenses related to maintaining the fund's assets. These fees can slightly reduce the overall return on investment.