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Funds

ETF

A fund holding a basket of assets whose shares trade on an exchange like a single stock. Most track an index, though actively managed ETFs exist.

Also called exchange traded fund · exchange-traded fund · ETFs

A fund holding a basket of assets whose shares trade on an exchange like a single stock. Most track an index, though actively managed ETFs exist.

Why it matters

An ETF gives diversified exposure in one trade, but you still own whatever the fund holds — including its concentration.

Related terms

  • Index
  • Expense Ratio
  • NAV

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