Exchange-Traded Funds, also known as ETFs, are a new breed of investments. In a nutshell, they are managed funds that can be traded on the open market. What are the benefits of ETFs? How are they traded? Salman Khan of the Khan Academy illustrates the flexibility of ETFs in an example.
From this video, you’ll understand:
- What an ETF is
- How ETFs differ from open-end funds
- Why ETFs have lower fees than other managed funds