The abbreviation ETF stands for “Exchange Traded Fund” and is a fund
that tracks the performance of an index, such as the German share
price (DAX for short) or the Nasdaq in the USA. ETFs enable broadly
diversified investments in many companies from different industries
and geographical regions. For example, 40 companies are directly
included in the index with the DAX ETF, and you can participate
directly in its success. This can reduce risks and increase the
ETFs are available for many asset classes, i.e., equities, bonds, and commodities, as well as for specific sectors, e.g. renewable energies.
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