What is an ETF?
An ETF, or exchange-traded fund, is a type of investment that owns a basket of assets, such as stocks, bonds, or commodities. ETFs trade on an exchange like a stock, and they often seek to track an index, such as the S&P 500.
Are ETFs better than individual stocks and mutual funds?
Depending, of course, on your investment goals and risk tolerance, ETFs offer diversification and lower fees than mutual funds, but they are also more transparent. ETFs are also more liquid than mutual funds, meaning that they can be bought and sold more easily since they can be traded throughout the day just like stocks.
The QQQ is an ETF that tracks the Nasdaq-100 index. It is of the largest and most popular ETFs, and it’s Abundance Asset Management’s “basket” of choice to run our cash-flowing, risk-averse investing strategy to beat the market indexes.
Learn more about our strategy! Schedule a one-on-one with Chris Perkins