A basket in one security
An ETF is an investment fund that holds a collection of assets, such as stocks or bonds, while its shares trade on an exchange like an individual stock.
Exposure with one purchase
Instead of purchasing many securities separately, an investor can use an ETF to obtain exposure to a defined portfolio. The level of diversification depends on the fund and its strategy.
Every ETF has a strategy
An ETF may follow a broad market, a sector, an investment style, a group of dividend growers, or another defined objective. Holdings, costs, risks, and tracking results should be reviewed before investing.