A pooled investment, an ETF resembles a mutual fund and allows you to follow an identified index or sector. So, if tech is your target, a tech-centric ETF is a good option.
"ETFs are baskets of securities designed to provide exposure to different areas of theHe said that ETFs are offered on virtually all asset classes, and trade throughout the day, anytime the market is open.
Plus, Friedman said that ETFs can be more tax-efficient compared to traditional mutual funds.Friedman said many ETFs attempt to track the performance of an index, which can track the overall market or a targeted subset of the market.
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