Glossary/Instruments/Exchange-Traded Fund (ETF)
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Exchange-Traded Fund(ETF)

Definition

A fund holding a basket of assets, such as stocks or bonds, that trades on an exchange like a single stock. ETFs offer instant diversification, usually at low cost.

Example

You buy one share of SPY, an ETF that tracks the S&P 500, and instantly own a small slice of all ~500 companies in the index.

An easy way in. One buy, instant diversification.

In plain words

A fund you buy like a stock that holds a whole basket of investments at once.

The chart
Chart explaining Exchange-Traded Fund (ETF)

A fund that trades like a stock.

The slides

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Go deeper

The Little Book of Common Sense Investing

by John C. Bogle

[Placeholder: your one-line take on why this book helps with Exchange-Traded Fund (ETF).]

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