ETF — meaning explained

ETF: A basket of many investments in one purchase.

What it means

An Exchange-Traded Fund holds dozens or thousands of stocks or bonds. Buying one share of an ETF gives you a slice of everything inside it — instant diversification.

Category

Basics — part of the free InvestED Academy investing glossary for teens.

See it in action

Practise with real prices and fake money in the market simulator, or start the free course at module one.