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What is the difference between ETFs and stocks?
What is the difference between ETFs and stocks?

Check out the difference between an ETF and a stock

Updated over a week ago

*Stock trading: countries: UK, France, Poland, Belgium, Portugal, Netherlands, Germany, Italy, Luxembourg

ETFs trading: countries: France, Poland, Belgium, Portugal, Netherlands, Germany, Italy, Luxembourg

While both ETFs and stocks are traded on stock markets, they have some differences.

Stocks represent the ownership in a certain company, usually giving shareholders voting rights and a portion of the company's profit in the form of dividends.

ETFs, on the other hand, are investment funds that invest in a variety of assets, such as stocks, bonds, and commodities. By investing in an ETF, you own ETF shares and gain exposure to the performance of the underlying assets, but you do not hold actual shares of the companies featured in the ETF.

To learn more about the ownership of the underlying assets featured in the ETF, please refer to the article Do I own assets in an ETF?

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