Question

What do you call collections of stocks and bonds that are traded on securities exchanges but themselves are traded more like individual stocks than like mutual funds

Answer 1

Collections of stocks and bonds that are traded on securities exchanges but themselves are traded more like individual stocks than mutual funds?

The correct answer is an exchange-traded fund (ETF)

What are exchange-traded funds?

ETFs, or "Exchange Traded Funds," as the name implies, are funds that trade in exchange-traded funds and typically track a particular index. Investing in ETFs gives you a bundle of assets that you can buy and sell during market hours. It has the potential to reduce risk and exposure while helping to diversify the portfolio.

ETFs have several advantages over traditional open-ended funds. The four main benefits are transaction flexibility, portfolio diversification and risk management, low cost, and tax benefits.

Learn more about securities exchanges here

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