Exchange traded funds, or ETFs for short, are funds that are traded like stocks on public exchanges. ETFs first became popular in the US with the introduction of well-known ETFs like SPDR that tracks the price of the S&P 500 Index, and later spread to many other countries around the world. Today, there are thousands of ETFs in existence, covering everything from national stock indices, specific industries, and even ETFs that follow specific investment strategies.
Trading ETFs as contracts-for-difference (CFDs) from FCA-regulated forex brokers or others is ideal for short-term traders or day traders who want more buying power in the market. With CFDs, leverage can help generate much more meaningful profits from ETFs, compared to just holding the underlying asset without leverage.