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ETF

A fund holding many stocks or bonds, traded like a single stock on exchanges.

An ETF (exchange-traded fund) is a collection of investments bundled together and sold as one package. Instead of buying individual stocks or bonds, you buy shares of the fund, which owns dozens, hundreds, or thousands of underlying assets. ETFs typically track an index—like the S&P 500 or a bond market benchmark—so they move with that index rather than being actively managed.

ETFs exist because they offer diversification and lower costs compared to buying assets individually, while remaining easy to trade during market hours like regular stocks. When you see ETFs mentioned in financial news, it usually relates to how money is flowing into or out of certain market segments, or how investors are positioning themselves for economic conditions ahead.

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Written once as a plain-English reference, not as advice. Nothing here is a recommendation to buy or sell anything.

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