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What Is an ETF?

A basket of stocks in one investment

An ETF (Exchange-Traded Fund) holds a collection of stocks bundled into one investment you can buy like a single share. SPY, for example, tracks the S&P 500 — buying it gives you exposure to 500 companies at once. ETFs are a simple way to diversify without picking individual stocks.

Quick check

What's the main advantage of an ETF over a single stock?