It is easier to invest in an exchange-traded fund to diversify your investments than to buy each stock listed in the TSX.

Question

Quizplus · Accepted Answer

Exchange-traded funds (ETFs) are collections of securities that track a specific index, and they offer instant diversification with one investment. By investing in an ETF, investors can gain exposure to a broad range of securities with less effort and expense than buying each individual stock listed on the Toronto Stock Exchange (TSX).

It Is Easier to Invest in an Exchange-Traded Fund to Diversify