What is an exchange-traded fund? (ETFs for beginners)

What is an ETF? ETF stands for exchange-traded fund, and in this video I explain the basics of how they work, why you should invest in them, and why they are perfect for beginner investors.

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*None of this is meant to be construed as investment advice, it's for entertainment purposes only. The links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partner websites. The video is accurate as of the posting date but may not be accurate in the future.

[jordankendall]

I appreciate that you clarified that when you own a share of an ETF (also mutual funds too), you don't own the underlying assets that make up the ETF. The fund company that manages the ETF owns the assets. That is a huge fundamental difference that many don't realize. Therefore, 1) you have to trust the fund company that they do in fact own the assets represented by the ETF and 2) the fund company own's the voting rights, so no proxy votes from publicly traded companies within an ETF to the shareholders of an ETF. If you are comfortable with those two facts, then invest in an ETF. Either way, I invest in ETFs and it is a great place to start for new investors. But in this day an age with zero commission and fractional shares, buying equities directly to hold for the long-term is preferable. So if you like Apple stock and you think it's a great investment, then buy shares of AAPL stock. You can match the diversification of the S&P 500 with at least 30 stocks (Next video idea for you Joshua!).

[JoshuaMayo]

I guess if there was a 5-year-old who didn't know what Crayons are, they would have no clue what I was talking about in this video!

[Andrea-vwuk]

Thank you so much for the time and effort you put into your videos, after hours of research I am finally starting to understand the basics of investing thanks to your videos!

[lauramello]

I'm loving your videos Joshua. I feel safety and peace as I watch it. Thank you for helping us

[FluentinFinance]

Josh, this is great. Very informative. Well shot and organized. I am looking forward to your Youtube journey, This is amazing content!

[KayOfLight]

Can you do more explaining for 5 year old videos. Im on that level in finance terms

[na-cpkp]

Found your channel today and I love it bro. Great topic! Keep it up!

[lareshondatreadway]

I appreciate you breaking things down in an absolute simple form 👏🏿🙏🏿🙏🏿🙏🏿

[ongjoric]

Thank you for sharing this information Josh. God bless.

[thearthunter]

great video series, listening to them

[ChristineBecker]

THANK YOU. Totally understand ETFs now!

[fatdogz]

Thank you, I’m fifteen and wanted to start saving money for the future. You’ve helped me learn what etfs and stocks are and how they work.

[entertainmenTvpro]

A beautiful video love this video ♥️♥️♥️♥️♥️♥️

[Shaquille_Oatmeal_]

... Are you saying... "Crayons"😐?

[bajuracan]

So is it a good idea to have multiple EFTs?

[johnday]

Lol five year old!! Can we go to Two?

[samanbayorousow]

Hi I'm Sow and I like in the Bronx. How to contact you?