When you have little more than a basic understanding and minimal experience, one option for investing in the stock market is to use passive management funds, which are typically characterized by higher diversification, lower risk and reduced commissions. Even the most inexperienced investors should’ve read that opening sentence and thought, “This must be about ETFs.”
Correct! Exchange-traded funds (ETFs) allow you to invest in a diversified range of assets, such as equities and bonds. They are extremely liquid and traded on the stock exchange, and you can buy and sell them whenever the market is open.
