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What does ETF stand for?

ETF stands for Exchange-Traded fund. Here is breakdown of that means.

Exchange-Traded means you can buy and sell ETFs on public stock exchanges like the Nasdaq or the New York Stock Exchange.

In this context, a fund is a bundle of assets, usually stocks, bonds and/or cash.

These bundles of stocks, bonds, and cash usually track an index, or group of securities with something in common.

As you read more about ETFs, you will encounter the statement “ETFs trade like Stocks”, this simply means you can buy and sell ETFs in a similar way to stocks, for instance, ETFs are bought and sold on exchanges, through a broker, and can trade throughout the day.

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