I am trying to understand the asset class of ETFs. I know ETFs are traded on exchanges, but I want to know how they are classified in terms of asset class. Are they considered as equities, bonds, or some other type of asset?
5
answers
EmilyJohnson
Thu Feb 13 2025
ETFs are available across various asset classes, encompassing both traditional investments and alternative assets.
Caterina
Thu Feb 13 2025
These alternative assets can include commodities and currencies, providing investors with diverse options.
KimonoElegantGlitter
Thu Feb 13 2025
One of the primary advantages of ETFs is their cost-effectiveness. They tend to have lower expenses compared to mutual funds.
Pietro
Thu Feb 13 2025
ETFs also offer greater liquidity, allowing investors to buy and sell shares easily on the stock exchange.
Dreamchaser
Wed Feb 12 2025
ETFs are categorized under Exchange Traded Products (ETPs), which are financial instruments traded on exchanges.