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 return potential.

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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