What is an Exchange-Traded Fund (ETF)? By Iain Butler: Chief Investment Advisor, Motley Fool Canada Fool It’s no secret: when you’re a DIY investor, figuring out the right diversification of your investments can be tough. Not only do you have to pick stocks from companies and industries that you’re probably unfamiliar with, but you also have to balance those stocks with other investments (bonds, real estate, commodities) to create the right risk portfolio. On top of that, buying and selling individual stocks can start to get costly, as management fees and commissions add up, putting additional pressure to “get it right” fast.