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ETF (exchange-traded fund) — definition & meaning

A fund holding many assets that trades on an exchange like a share.

An ETF is a basket of assets — such as shares, bonds or commodities — that you can buy and sell like a single stock throughout the day.

ETFs offer instant diversification and usually low fees, which is why they are popular with long-term investors. Some are leveraged or inverse and are far riskier, meant only for short-term use.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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