What Is An ETF?

Diversification often plays a key role in sustaining a long-term profitable portfolio. While there is always the route of buying a basket of various stocks, most people do not have the time nor want to spend time researching. So they turn to mutual funds, but fees can be costly and terms can be for longer than you want.

That is where an ETF – exchange traded fund – comes in.

In short, an ETF is a mutual fund that can be traded like a stock. I could go on more about it, but Mint recently put together a pretty good infographic that details more about ETFs. Click image to enlarge.