Exchange-Traded Fund(ETF)
A fund holding a basket of assets, such as stocks or bonds, that trades on an exchange like a single stock. ETFs offer instant diversification, usually at low cost.
You buy one share of SPY, an ETF that tracks the S&P 500, and instantly own a small slice of all ~500 companies in the index.
An easy way in. One buy, instant diversification.
A fund you buy like a stock that holds a whole basket of investments at once.
A fund that trades like a stock.
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The Little Book of Common Sense Investing
by John C. Bogle
[Placeholder: your one-line take on why this book helps with Exchange-Traded Fund (ETF).]
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