What Is an ETF?

ETFs, or exchange-traded funds, are investment tools that combine traits of stocks and index funds. They are passively managed, diversified, and low-cost, trading on exchanges like stocks. ETFs hold actual securities, such as bonds or stocks, in baskets. Investing in ETFs, like gold ETFs, offers safety and ease without needing wealth. They rarely incur yearly capital gains taxes, making them attractive. ETFs have grown significantly, trading more than the US GDP annually, and are expected to remain a key part of investing.

What makes ETFs increasingly popular as investment tools?

How do ETFs handle capital gains taxes compared to mutual funds?