What is an ETF? | Finance in 5 Minutes скачать в хорошем качестве

What is an ETF? | Finance in 5 Minutes

An ETF (Exchange-Traded Fund) is a basket of securities that trades on a stock exchange just like a regular stock, giving investors instant diversification with a single purchase. In this episode of Finance in 5 Minutes, we break down everything beginners need to know about ETFs and why they've become one of the most popular investment vehicles in the world. We start with the "needle in the haystack" problem — the risk of betting everything on a single stock. ETFs solve this by bundling dozens or even hundreds of companies into one tradeable fund. When you buy a share of an ETF, you own a slice of every company inside it, so if one stock drops, the others help cushion the blow. Key points covered in this video: The difference between passive ETFs (which track an index like the S&P 500 at ultra-low cost) and active ETFs (which use managers to try to beat the market) Expense ratios explained — passive ETFs can cost as little as $1 per year for every $1,000 invested Popular ETFs every investor should know: SPY, QQQ, and IWM Exotic ETFs covering commodities, crypto, and bonds How ETFs compare to individual stocks and mutual funds on fees, trading flexibility, and tax efficiency Dividends and tax advantages of holding ETFs Dollar-cost averaging as a simple, effective strategy for long-term wealth building Whether you're opening your first brokerage account or looking to simplify your portfolio, ETFs are an affordable, beginner-friendly way to invest. This video is part of the Finance in 5 Minutes: Money Terms Explained series, where we make complex financial concepts easy to understand. Subscribe and hit the bell so you never miss an episode!