What’s an ETF?

ETF stands for exchange-traded fund. It’s quite similar to a mutual fund in that it’s a lot of stocks combined together into one investment.

Vaiki Randala avatar
Written by Vaiki Randala
Updated over a week ago

🌱 ETF stands for exchange-traded fund. It is essentially a pooled investment fund that passively tracks an index of stocks or bonds. The ETF buys each of the underlying stocks or bonds that comprise such index.

🌱 The philosophy behind using ETFs is that you will hold shares in many large, global companies. This allows for greater diversification of your investment, lower fees and better liquidity.

🌱 ETFs are a good option for building a savings plan and investing for the long term. By investing a fixed sum in ETFs monthly, you can avoid stress and rely on long term market growth without the need to monitor market movements daily.

🌱 There are already thousands of sustainable funds around the world, but the focus of ESG funds on sustainability and impact varies a lot. So you need to look beyond the label and get to know different sustainable investing strategies. This is why people still need help in navigating and investing in the most highly ranked sustainable funds. We aim to make it easy, even for beginner investors.

Finding the best impact ETFs and setting up a diversified green investment plan does not need to be difficult.

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