How to Trade ETFs

Have you ever found yourself wondering how to trade ETFs? Well, the investment vehicle’s full title—exchange-traded fund—should give you your first clue. ETFs trade continuously on a stock exchange, so traders can buy or sell ETFs just as if they were purchasing or selling shares of stock. The difference is that an ETF tracks an index. So, an ETF offers traders the flexibility of stock trading along with the diversification of a mutual fund.