Exchange-Traded Fund (ETF)
An Exchange-Traded Fund (ETF) is a security that tracks an index, sector, commodity, or other asset basket and trades on a stock exchange like a stock. It represents a share of a diversified portfolio and is priced and traded throughout the regular market session.
Example: In practice, an investor may trade ETF shares on an exchange to adjust exposure to a broad market index in response to market conditions.
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