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A fund that holds many assets and trades like a single stock.
An exchange-traded fund (ETF) is a basket of investments that trades on the stock market like a single stock. Many ETFs simply track an index, such as the S&P 500, so one purchase gives you a slice of hundreds of companies.
Buying one share of an S&P 500 ETF makes you a tiny owner of about 500 large US companies at once.
ETFs are a cheap and simple way to diversify. Index ETFs often charge very low yearly fees, which matters a lot over decades.
Try it: Portfolio X-Ray