ETF (Exchange Traded Fund)

An ETF, or Exchange Traded Fund, is an investment that’s built like a mutual fund but trades like an individual stock. Like mutual funds, ETFs are professionally managed baskets of many different securities, so they're diversified. Most are designed to closely track the performance of a market benchmark or index. Unlike mutual funds, which are only traded once at the end of the day, ETFs can be traded throughout the day like individual stocks.

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