What Is ETF (Exchange-Traded Fund)?
Definition and plain-English explanation of "ETF (Exchange-Traded Fund)"
An ETF is a basket of securities that trades on a stock exchange like a single stock. ETFs typically track an index (like the S&P 500), sector, commodity, or theme. They offer instant diversification, low fees (often 0.03–0.20%), and tax efficiency. Index ETFs are widely recommended for long-term investors because they consistently outperform most actively managed funds over time.
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