ETF (Exchange-Traded Fund)
InvestingA fund that trades on stock exchanges like individual stocks, typically tracking an index with lower fees than mutual funds.
Example
Example: You buy 10 shares of VTI (Vanguard Total Stock Market ETF) at $250/share for $2,500. This single purchase gives you ownership in over 3,700 US companies. The expense ratio is 0.03% — just $0.75/year on your $2,500 investment. Compare that to a typical mutual fund charging 0.50-1.00% ($12.50-$25.00/year).