Who buys ETFs?

ETFs are used by a wide range of investors: individuals building long-term portfolios, financial advisors allocating client money, institutions rebalancing exposures, and traders taking short-term positions.

Different buyers use ETFs for different reasons. Long-term investors often favor broad, low-cost index ETFs. Institutions might use highly liquid ETFs for quick market exposure or hedging. Traders may use sector, thematic, or leveraged products tactically.

That diversity of buyers is part of why ETFs are so liquid and widely adopted. The same vehicle can serve both long-term "buy and hold" and short-term trading use cases.