5th Feb 2010 by JonB
An ETF is a security that lets you take advantage of the appreciation and depreciation of a commodity, index or another related group of assets. For example, a real estate ETF may allow you to take advantage of the depreciation or appreciation of real estate prices without the risk of being invest in one company. An ETF offers investors a way to expose themselves to an entire industry, yet still be diversified within that industry. ETFs also are useful to those who have very little to invest, or simply want to commit only a small amount of capital in a given area. It's important to note that ETFs trade just like stocks.
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