An ETF, which stands for Exchange-Traded Fund, consists of different investment securities, like stocks or bonds. ETFs are traded on major stock exchanges, just like individual stocks, and can be bought and sold throughout the trading day.
At CST Spark, we have portfolios that are made up of diversified ETFs. Some benefits are:
- They’re low-cost.
- Instead of buying one stock, you’re invested in a mix of assets, which helps reduce your risk.
- ETFs are rebalanced on a regular basis to maintain diversification across a group of stocks or bonds.