What is a stock ETF?
An example of an AI chatbot conversation about stock ETFs and their benefits.
What is a stock ETF?
A stock ETF, or Exchange-Traded Fund, is a type of investment fund that holds a collection of stocks and trades on stock exchanges.
How does it differ from mutual funds?
Unlike mutual funds, which are priced at the end of the trading day, ETFs can be bought and sold throughout the day at market prices.
What are the benefits of investing in stock ETFs?
Some benefits include diversification, lower expense ratios, and the ability to trade like a stock.
Are there any risks associated with stock ETFs?
Yes, risks include market risk, liquidity risk, and the potential for tracking error.
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