An exchange-traded fund is a type of investment fund and exchange-traded product that is traded on stock exchanges.
ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges. ETFs are created by large money managers which bundle the underlying instruments of the fund together. After a series of regulatory steps, an ETF can be offered for sale to the public and can be purchased through ACME Dividends.
There are ETFs available to suit almost any taste, style, asset class or industry. Many track an index, for example Stock ETFs track stock indexes, while other ETFs track indexes for commodities, currencies and bonds. There are also leveraged ETFs designed to multiply the daily returns of a particular index or asset class. Of course, that comes with increased risk which is curtailed when you trade with ACME Dividends.