ETF
A fund holding many investments at once that trades like a single stock.
An ETF (exchange-traded fund) is a basket: one share gives you a slice of dozens, hundreds, or thousands of companies. Broad, low-cost index ETFs are a favorite for kids' accounts because a single purchase delivers instant diversification and a story a child can grasp — 'we own a little of the whole market.'
Explain it to your kid
"One basket holding many investments at once."
Want to go deeper? What is an ETF?.
Related words
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