What is an ETF?

An ETF (exchange-traded fund) is an investment fund that holds a basket of assets such as stocks or bonds. Instead of buying each holding individually, you can buy one ETF share and get diversified exposure to everything inside the fund.

ETFs trade on stock exchanges during market hours, so you can buy and sell them throughout the day at market prices. That's different from many mutual funds, which are typically priced once per day.

The most important part of an ETF isn't the wrapper, it's what it owns and how it's managed. A broad index ETF can be a simple core holding, while a narrow thematic or leveraged ETF can behave very differently and carry much higher risk.