Are ETFs good for beginners?

ETFs are often beginner-friendly because you can get diversified exposure with a single purchase. A broad index ETF can spread risk across many companies rather than betting on one stock.

They're also simple to buy and sell through most brokers. Many ETFs have low expense ratios, which helps keep long-term costs down.

The main beginner trap is picking ETFs that are more complex than they look, like leveraged, inverse, or very narrow thematic funds. If you're just starting, focus on understanding what the ETF owns and how it fits your plan.