ETFs, or Exchange Traded Funds, are essentially composed of stocks, bonds, or other investment options. They are similar to mutual funds, but have more open options because they trade like stocks. This means you can access your portfolio, as well as buy or sell it during normal trading hours, unlike mutual funds. More importantly, unlike mutual funds, there is no fund manager to handle your investment plans – you are in charge of buying or selling a stock whenever you like, and your funds are immediately credited or debited to your account. Because of this, ETFs cost less.
