Finance Library
InvestingBeginner 5 min read

ETFs Explained

A simple way to own hundreds of companies in a single trade.

ETF
1 share
Apple
Microsoft
Amazon
Google
Tesla
Nvidia
Meta
+493 more
One ETF share = a slice of every company in the basket.

What it is

An ETF (Exchange-Traded Fund) is a basket of investments — often hundreds of stocks or bonds — packaged into a single share you can buy on the stock market like any other.

Why people love them

One purchase gives you instant diversification. Costs are usually low because most ETFs track an index rather than paying a manager to pick stocks.

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