Exchange-Traded Funds (ETFs)

Funds — most tracking an index — whose shares trade on exchanges all day at market prices; an in-kind creation/redemption mechanism keeps prices near NAV and adds tax efficiency.

Most ETFs are passively managed index trackers with low expense ratios; investors pay brokerage commissions rather than sales loads. Leveraged and inverse ETFs reset daily and are designed for short-term trading, not buy-and-hold — a tested suitability point.

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