home → dictionary

the dictionary · invest

ETF

the same idea as a mutual fund, in a wrapper that trades like a stock all day long.

20-sec readplain languageinvest

like you're 5

same pizza. this one just has a window where you can buy or sell a slice any minute the shop is open, instead of only at closing.

use it in a sentence

“i buy the same total-market ETF every payday and ignore it.”

good to know

exchange-traded fund. for a long-term investor the mutual fund vs. ETF choice is mostly a packaging question — fees and what's inside matter far more than how it trades. ETFs often have lower minimums, which is why a $50 first investment usually starts here.

go deeper