ETF are a particular type of publicly traded fund. This type of investment does not require a large initial capital and for this reason it is very widespread.
The main feature of ETFs is that they replicate the composition of a market index (sectoral, bond, equity or geographical) and its return. The acronym, which stands for Exchange Traded Fund, indicates a particular category of non-actively managed mutual funds.
These particular funds accurately replicate the performance of the basket of underlying securities, which has been previously identified. The ETF return is therefore very similar to the underlying stock benchmark.
For example, if the Dow Jones index rises by 3%, the ETF that tracks this index will register a rise of the same proportion.
To learn more about this type of investment, we advise you to read What is an ETF? How much returns and how to invest in ETF
