An ETF, or exchange traded fund, is like a mutual fund, in the sense that they take money from a lot of people and then invests it into a diversified portfolio of companies. However, unlike a mutual fund, an ETF lists its shares in public markets. This means you can go buy shares in an ETF and virtually own equity in many different companies without the need to hand pick each one, or allocate a lot of money to any particular one.
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