March 7, 2019

13 Things You Need to Know About Your Finances in 2019

6. The ABCs of ETFs

An ETF stands for exchange-traded fund, an investment fund traded on stock exchanges. Depending on your age, your business-school prof might not have covered ETFs because they only emerged in the U.S. in 1993.

Today, they’re a popular investment vehicle. Like an index mutual fund, an ETF typically follows the performance of a particular index: the S&P 500 Index, for example.

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