New to ETFs? Learn more to see if they are right for you
ETFs are a rapidly growing class of low-cost index funds that trade like stocks. With the liquidity of stocks, they can be bought and sold throughout the market day and offer exposure to market, industry, sector, and asset indexes.
ETFs enable traders to trade a group of stocks or bonds within a particular market sector by trading a single security. ETFs are automatically diversified equities, greatly reducing risk because there is minimal exposure to any one individual stock.
For more information about ETFs at Schwab, please call a Schwab investment consultant at 866-855-5637.
Exchange-traded funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost.
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