An exchange-traded fund (ETF) is a security that tracks an index, a commodity or a basket of assets just like an index fund, but trades like a stock on an exchange. ETFs track fairly closely to the indexes that they follow, such as the S&P 500 or the Dow Jones Industrial Average. ETFs are bought and sold like stocks throughout the day, and therefore experience continually changing prices. Betterment uses ETFs in both our stock and bond portfolios because of the liquidity, diversification, and low management fees they provide. For more information on the ETFs you are invested in with Betterment, please visit our portfolio page.
Articles in this section
- What are ETFs?
- What is the difference between mutual funds and ETFs?
- What stock ETFs are used in the Betterment Portfolio?
- What are the current overlaps of the same stock held within different ETFs?
- What are the potential tax differences between ETFs and mutual funds?
- What bond ETFs are used in the Betterment Portfolio?
- What do I need to know about ETF versus mutual fund costs?
- Can I invest in an individual stock or fund (i.e. S&P 500 index)?