What is ETF?
An ETF, or exchange traded fund, is a single fund that holds a basket of assets, such as many stocks or bonds, and trades on an exchange like a normal stock. Buying one share of an ETF gives you a small piece of everything inside it, which is a simple way to spread money across many holdings. ETFs can track an index, a sector, or a theme, and they usually charge a small yearly fee.
Why ETF matters
ETFs are one of the most common ways beginners get instant diversification with a single purchase.
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