An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product that is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, futures contracts, and/or commodities such as gold bars. ETFs are bought and sold like a common stock on a stock exchange, and their share prices fluctuate all day as the ETF is bought and sold. ETFs can contain all types of investments, including stocks, commodities, or bonds, and some offer U.S.-only holdings, while others are international. ETFs provide an opportunity to diversify holdings, similar to index mutual funds, and could contain hundreds or thousands of stocks or bonds, spreading out risk exposure compared to owning just a handful of individual stocks or bonds. ETFs often have lower fees than other types of funds, and their minimum investment is the price of a single share, which could be as little as $50, depending on the ETF. ETFs are traded more easily than mutual funds, and they can be used to gain exposure to virtually any market in the world or any industry sector. ETFs are often used as part of a passive investment approach, mainly for long-term buy-and-hold investment rather than tactical allocation.