ETFs, or Exchange-Traded Funds, are one of the easiest and most beginner-friendly ways to start investing. They have become extremely popular because they offer diversification, lower risk, and simplicity for new investors.
An ETF is basically a collection of investments bundled together into one fund. Instead of buying shares of just one company, an ETF allows you to invest in many companies at the same time. For example, one ETF may include companies like Apple, Microsoft, Amazon, and Google all in a single investment.
This makes ETFs less risky compared to investing in a single stock. If one company performs badly, the other companies in the ETF can help balance the overall performance.