An Exchange Traded Fund (ETF) is an investment fund that trades on a stock exchange like a regular stock. ETFs hold a basket of assets (stocks, bonds, etc.), offering instant diversification. They're often designed to track specific indices like the S&P 500. Unlike mutual funds, ETFs trade throughout the day, providing liquidity. They generally have lower fees than actively managed funds, making them a cost-effective and convenient way to invest in a diversified portfolio while tracking market performance.
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