Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, is a basket of assets such as stocks, bonds, or commodities that is bought and sold on a stock exchange like a regular share. It often tracks an index or industry and can be a cost-effective way to invest passively. ETFs share features of both mutual funds and stocks.

An ETF is like buying one basket that already holds many investments inside. You can trade that basket on the stock market just like a normal share.