Exchange-Traded Funds Gain Popularity for Cost Efficiency and Trading Flexibility

Exchange-Traded Funds (ETFs) are investment funds comprising diverse assets like stocks, bonds, or commodities, traded on stock exchanges similarly to individual stocks. Unlike mutual funds, ETFs typically track market indexes passively, offering lower costs, greater transparency, and intraday trading flexibility. Their price fluctuates throughout the trading day based on supply and demand. ETFs have gained popularity globally, including in India and the UK, as cost-efficient, diversified options favored by long-term and modern investors.