What is ETF?
Exchange Traded Fund
It is an investment tool that allows you to buy and sell many different stocks or assets in a single package on the stock exchange.
Overview
An ETF allows you to buy a basket of stocks or bonds as a single product. In this way, instead of investing in a single company, you can spread the risk by investing in an entire sector or index. It can be bought and sold on the stock exchange throughout the day, just like a stock.
How it works
You search for the symbol of the ETF you want through your stock exchange account and buy it as if you were buying shares. Since these assets are managed by professional managers, you do not need to constantly monitor them.
Where it is used
It is used in stock markets and investment platforms.
Commonly confused with
They may be confused with mutual funds, but ETFs can be bought and sold on the stock exchange at spot prices during the day.
Frequently asked questions
Why should I buy an ETF instead of a single stock?
Spreading the risk across a sector rather than tying it to a single company may be a safer investment strategy.
Is it costly?
They generally have low management fees, but you pay brokerage commissions when you trade.
Related terms
Related tools
This explanation was written in plain language for TreScout and machine-translated from the Turkish original · the Turkish version prevails. If something looks wrong or missing, write to hello@trescout.com. Read in Turkish →