ETFs or exchange-traded funds are low cost index funds that trade like stocks. ETFs offer intraday liquidity meaning they can be bought or sold when the stock market is open for trading. Generally, ETFs are very tax-efficient and have lower annual expenses compared to closed end funds and mutual funds. ETFs cover a broad spectrum of assets including stocks, bonds, currencies, real estate and commodities. ETFs can be sold short, leveraged with margin, hedged with call/put options or bought and held.
