Stocks and ETFs
ETF
A fund that trades on an exchange like a stock and usually holds a basket of investments.
Also called: exchange traded fund, exchange-traded fund
What it means
ETF stands for exchange-traded fund. An ETF is a pooled investment vehicle that can hold many assets, such as stocks, bonds, or commodities, and it trades during the day on an exchange. Many ETFs are built to track an index, though not all do.
Why it matters
ETFs are common entry points for beginners because they can provide broad exposure in one purchase.