4. Exchange-Traded Funds (ETFs)

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Overview: ETFs are investment funds traded on stock exchanges, holding assets like stocks, commodities, or bonds.

Benefits:

• Diversification across various assets.
• Lower expense ratios compared to mutual funds.
• Flexibility to trade like stocks.

Risks:

• Market risk depending on the underlying assets.
• Potential for lower returns than individual stock picking.

Tips:

• Choose ETFs that match your investment goals (e.g., growth, income).
• Consider sector-specific ETFs for targeted exposure.