ETF (Exchange-Traded Fund)
A basket of investments that trades on a stock exchange like a single stock.
ETFs bundle hundreds or thousands of stocks, bonds, or other assets into one tradeable security. Buying one share of a total stock market ETF like VTI gives you exposure to over 3,500 US companies. ETFs are the building block of modern passive investing — low fees (often 0.03-0.10% annually), broad diversification, and tax efficiency. They trade throughout the day like stocks, unlike mutual funds which price once daily.
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