#1 Diversification ETFs are a great way to ease yourself into investing if you’re not confident in individual stock picking. With an ETF, you gain exposure to a basket of stocks, bonds or other asset classes depending on the ETF you invest in. This helps to diversify your portfolio at a low cost. Diversification helps you to reduce your investment risk by not having all your eggs in one basket. #2 High liquidity ETFs are traded on the open market. This makes them highly liquid as investors can choose to buy and sell the ETF at any time. All that’s required for you to purchase an ETF is a brokerage account and your Central Depository (CDP) account.