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What is an Exchange Traded Fund (ETF)?
An Exchange-Traded Fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets and can be bought or sold on a stock exchange like a regular stock. Unlike mutual funds, ETF prices fluctuate throughout the day. ETFs typically have lower expense ratios compared to buying stocks individually. An ETF is a basket of securities tracking an underlying index—for example, a Nifty 50 ETF tracks the Nifty 50 Index, giving you exposure to its 50 constituent stocks.
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