An ETF, or exchange-traded fund, is a financial tool that follows the trend of a market or a group of markets. With this, it is possible to make a type of investment that allows market participants to buy baskets of stocks containing shares of hundreds or thousands of companies with a single purchase.
ETFs are publicly traded instruments, and ETF shares can be bought and sold at any time, just as if they were ordinary equities or bonds.
ETFs are an optimal choice for beginner investors because they are usually low-cost and help provide instant diversification to a portfolio: funds are spread out among many companies instead of just one.
Each ETF product corresponds to a certain number of futures contract positions, which are managed by a professional financial team. The fund manager can dynamically adjust the futures positions so that the entire fund share maintains fixed leverage for a specific period of time.
With an ETF, they have the goal of replicating an index as faithfully as possible, physically or synthetically.
ETFs are publicly traded securities, like stocks. During trading, therefore, they can be bought or sold at any time during the trading day. Their course follows the trend of the index: if it rises, the value of the ETF increases; if it goes down, the ETF loses value.