ETF vs. Stock: What's the Difference?
A stock represents ownership in one company. An ETF holds a collection of assets tracking an index, sector, or asset class. For example, an S&P 500 ETF tracks the performance of 500 large US companies simultaneously.
ETFs trade in real time during market hours; mutual funds price once daily at NAV. ETF expense ratios are typically 0.03%–0.20%, far below actively managed funds.
Types of ETFs
Equity ETFs: Track broad indices (S&P 500, NASDAQ-100) or sectors (tech, healthcare). Passive index ETFs are the most common and lowest cost.
Bond ETFs: Track government or corporate bond indices. Useful for fixed-income exposure without buying individual bonds.
Commodity ETFs: Track gold, oil, or agricultural prices. Allow commodity exposure without physical delivery or futures contracts.
Leveraged ETFs: Aim for 2x or 3x daily index returns. High risk and decay over time — not suitable for long-term holding.
How to Buy ETFs
Open a brokerage account with access to the exchange where the ETF is listed. For US ETFs (SPY, QQQ, GLD), you need a broker offering US market access. For Turkish ETFs, any Turkish broker works.
Enter the ETF ticker symbol and place a market or limit order. ETFs settle in T+2, the same as most equities.