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What is an ETF?

💰 Money · updated 4 weeks ago · 2 min read
What is an ETF?
Short answerAn ETF is a fund you can buy and sell like a stock that holds a basket of assets.

An ETF, or exchange-traded fund, is a basket of investments you can trade on the stock market like a single share. It might hold stocks, bonds, or other assets depending on the fund.

People use ETFs because they can be cheap, diversified, and easy to buy. They are often a simple building block for long-term investing.

The main thing to remember is that you are buying the fund’s holdings and strategy, not just a ticker symbol.

Sources

SEC - Exchange-Traded Funds

This is general information, not professional financial advice. For decisions about your situation, talk to a qualified professional.

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