What is an ETF?
An ETF (Exchange-Traded Fund) is a basket of assets that trades like a stock. It’s one of the easiest ways to get diversified exposure to a market, because instead of buying hundreds of individual stocks, you can buy one ETF and instantly hold them all in the right proportions. Famous ETF Examples Two of the most well-known ETFs are: SPY (SPDR S&P 500 ETF) → Tracks the S&P 500 Index, which represents 500 of the largest U.S. companies. QQQ (Invesco QQQ Trust) → Tracks the Nasdaq-100 Index, focused on the 100 largest non-financial companies listed on the Nasdaq. Both hold many different stocks in specific weights. For example: ...