ETFs are EXCHANGE-TRADED FUNDS. They are investment funds that trade on stock exchanges. They are designed to track the performance of a specific index, sector, commodity, or asset class.

ETFs provide investors with an opportunity to gain exposure to a diversified portfolio of assets without having to buy each one individually.

It is a little bit like buying a set meal in a restaurant. The chef has put together the combination of dishes that you will get under the set menu. No substitution’s. You get to try a little of a variety of dishes that go together. Its much cheaper than buying a full portion of each dish. If one dish is bad, the whole meal is not ruined as you have a variety of dishes presented.

Real life examples: The S&P 500 is a collection of the 500 biggest and important companies in the United States. These companies are from different industries, including technology, finance, healthcare, and many more. Together they represent a big part of the economy. One example of an ETF that tracks the S&P 500 is by State Street (SPDR), others are Vanguard (VOO) and iShares (IVV).

The S&P 500 has an average return of approx. 10% over the last 30 years and make it appealing for long term investments strategies.

Another example of an ETF is iShares Core FTSE 100 UCITS which tracks the UK’s 100 largest companies.

ROBO Global healthcare technology and innovation ETF is a diversified portfolio of healthcare and tech stocks from around the world.

In conclusion ETFs can be a good way to diversify your portfolio, especially with small amount of money available for investing. Additionally they are relatively liquid – this means that they can be bought and sold easily on the stock exchange, at any time as long as it is open. This makes them popular investment choices for individuals.