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An ETF is a fund with a broad array of businesses who are traded on a stock exchange. ETFs can be segmented into what the businesses specialize in (e.g. green energy) or the businesses size (e.g. the 500 largest businesses in the USA)

It's becoming more and more popular to invest in ETFs, and there are several reasons as to why:

• It's easy to buy and sell ETFs because you can invest whenever the market is open
• You will spread out your risk quickly, which would take a long time to achieve if you purchase single stocks
• The costs are lower than e.g. traditional mutual funds

An ETF is also a simple opportunity for first-time investors. Choosing stocks and industries can be a challenge for many investors.

When you trade ETFs you need to be aware of taxes. But don't fret - it's not as hard as it may sound. ETFs are taxed after the inventory principle. This means that you have to pay taxes off your yield annually - thus, not when you sell the ETF. If your ETF has yielded loss a given year, you can likewise deduct it from your taxes.
There are two types of taxation under the inventory principle: stock taxation and capital income taxation.
Stock taxation means that the ETF has a tax rate of 27% up to the first 55.300 kr., you get in income in equity, and that amounts over 55.300 will be taxed with 42%.
With capital income taxation, the ETF will be taxed according to your capital income - between 37 and 42%, depending on what you pay in taxes.

It's easy to see how much you will be taxed from each ETF in the Lunar app