How are ETFs like Lego Sets? Understanding the Concept

Understanding ETFs Through a Lego Analogy

Photo by Iker Urteaga on Unsplash

Step into a toy store and let your eyes wander through the multicolored collection of Lego sets. From Harry Potter’s Hogwarts Castle to a full-scale model of the Star Wars Millennium Falcon, the variety is mesmerizing. Now, imagine each Lego set is an Exchange-Traded Fund (ETF), and each Lego block…