If you check apps like Drahim or Malaa, you will see diversified portfolios containing ETFs. But what is an ETF?
It stands for Exchange Traded Fund. The idea is simple: instead of buying one stock like Apple, the fund collects hundreds of stocks in one basket. Buying one unit means you own a small piece of all those companies.
Each ETF tracks an Index, such as:
- S&P 500: Top 500 US companies.
- Nasdaq 100: Tech focus.
- Global indices like MSCI and FTSE.
If the index goes up, the fund goes up. It is one of the smartest innovations: automatic diversification, easy trading like stocks, and low costs.
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That is why ETFs are the preferred choice globally. A simple product that effectively lets you own a piece of the global economy.
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#FinTech#ETF#Investment#RoboAdvisory
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