An ETF (Exchange-Traded Fund) is a basket of assets — stocks, bonds or commodities — that trades on an exchange like a single stock. ETFs give instant diversification and can track an index, a sector or a theme.
How traders trade it
- One ticker gives exposure to a whole basket.
- Trades intraday like a stock, unlike mutual funds.
- Tracks indices (e.g. SPY), sectors, commodities or themes.
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Related terms
Related: Indices · Stocks · Bonds · Commodities