: Important details about exchange trade fund? I am a non-expert who's thinking of putting his money into stocks, and ETFs look like an attractive option. What are some important things I should know about ETFs before buying

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Diversification. Based on your intended asset allocation, you will want to spread your money in many different types of stocks to reduce risk. You should research what types a given ETF holds -- country (US vs. international), size of company (large-cap vs. small-cap), etc. Note, you referred to stocks, but there are also ETFs for bonds, commodities, etc.

Fees. Most ETFs are passively managed index funds and many have very low management fees, a small fraction of a percent per year (and they can be bought for low or no commission using discount brokers). Management expenses come out of the value of ETF shares and reduce your returns over time. ETFs that have higher fees tend to be those you wouldn't want anyway: Small/niche sector ETFs (with fewer assets to support fixed expenses), those holding illiquid assets, or those with active management trying to "beat the market".

Tax efficiency. If the ETF is held in a taxable account (as opposed to a qualified retirement plan), will you receive taxable distributions that you may not want? ETFs naturally tend to be tax efficient, but you may want to avoid stocks paying large dividends, for example, if you don't need current income.