How can investors use ETFs as part of their stock investment strategy?

How can investors use ETFs as part of their stock investment strategy?

Exchange-Traded Funds (ETFs) offer investors a simple and cost-effective way to diversify their stock investments.
These funds trade like stocks but hold a basket of securities, allowing investors to gain broad market exposure with a single purchase.

How Investors Can Use ETFs in Their Strategy:
  1. Diversification: ETFs allow investors to spread risk across various sectors, industries, or asset classes.

  2. Cost-Effectiveness: They have lower expense ratios compared to actively managed mutual funds.

  3. Liquidity & Flexibility: ETFs can be bought and sold throughout the trading day, unlike mutual funds, which settle at the day's end.

  4. Thematic Investing: Investors can choose sector-based ETFs (e.g., technology, healthcare) or country-specific ETFs to align with their investment themes.

  5. Risk Management: Some investors use bond or gold ETFs to hedge against market downturns

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