Exchange-Traded Fund
a.k.a. ETF
A fund that holds a basket of assets, like an index of stocks or gold, and trades on an exchange like a…
In plain English
A fund that holds a basket of assets, like an index of stocks or gold, and trades on an exchange like a single share.
An ETF lets you buy a whole basket in one click: hundreds of stocks, a pile of bonds or a vault of gold. You buy and sell it during the day just like a share.
Most track an index and charge low fees. There are currency ETFs too, though most retail forex traders use spot or CFDs instead.
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