Learn / Glossary / ETF (exchange traded fund)

Glossary

What is ETF (exchange traded fund)?

An ETF is a basket of many investments that you can buy in one click, like a stock.

The simple explanation

An ETF holds lots of stocks, bonds or other assets and trades on an exchange all day. Many follow an index. Owning one gives you a small piece of everything in the basket.

An example

An ETF that follows the S&P 500 gives you a slice of 500 large companies in one purchase.

Why it matters

ETFs make it easy to spread your money across many companies at once.

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Related terms

Educational information, not financial advice.