Market & Structure
ETF
Exchange Traded Fund
Definition
A fund that trades like a stock and tracks an index or sector
Explanation
ETFs hold a basket of stocks and trade on exchanges like regular stocks. SPY tracks the S&P 500, QQQ tracks NASDAQ-100. ETFs offer instant diversification with low fees. If you can't pick individual stocks, buying broad market ETFs is a popular strategy.
Example
SPY (S&P 500), QQQ (NASDAQ-100), VTI (Total US Market)