4 Things to Know About ETFs

April 30, 2025

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You can think of an ETF as a basket of securities. Instead of buying individual stocks or bonds, an ETF allows you to own a stake in a fund that may hold many stocks, bonds, or other types of investments.

These stocks or bonds can reflect specific industries, indexes, or geographical locations. Because of their range of assets, ETFs have a certain degree of diversification built in, making them a popular option for investors looking to diversify their investments. (But remember: Diversification doesn’t guarantee a profit nor can it protect against loss.)

Interested in adding ETFs to your portfolio? Talk to a financial or investment advisor to understand your options and whether they’re right for your goals.

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