Lesson · 2 min read

    What is an ETF?

    Short answer

    An ETF (Exchange-Traded Fund) is a basket of many stocks you can buy with one ticker. Buy one share of an S&P 500 ETF and you own a tiny slice of 500 companies.

    Why it matters

    ETFs are the easiest way to diversify. Most long-term investors use them as their core holding.

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