Learn / Glossary / ETF (exchange traded fund)
GlossaryWhat 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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Educational information, not financial advice.