If i invest in my own multiple stocks in my pie is that the same as investing in an etf?
From what i understand and etf has an amont in diffrent companies but if i invest in multiple stocks and bonds etc of my choice is it the same?
Thank you
One difference is an ETF can rebalance automatically and for example a company that is underperforming can get kicked out and replaced, or a company that is taking up too much of the index is reduced. Or the ETF manager can decide to just shuffle things around if itβs an active ETF. So yes you can buy individual stocks to copy an ETF but the rebalancing would be very difficult to copy.