An ETF is an exchange-traded fund.
Diversification with a lower cost
An exchange-traded fund (ETF) is a type of security that is designed to offer investors a way of gaining exposure to the price movements of a recognised basket of securities such as the S&P. ETF’s have the look and feel of a mutual fund, but trade in real-time like a stock, meaning they can be short-sold. In-spite of this, they are generally considered to be passive investments.
ETFs can contain many types of investments, in addition to equities, they are commonly used for commodities, bonds, or even a blend of investment types.