An exchange-traded fund is a bundle of stocks or bonds that track the overall movement of the market.

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An exchange-traded fund (ETF) is a type of investment fund that comprises a collection of securities, such as stocks or bonds, and is traded on stock exchanges like individual stocks. ETFs are designed to mirror the performance of a specific index, such as the S&P 500, and investors can buy and sell shares in the ETF throughout the trading day. Therefore, ETFs track the overall movement of the market or a particular sector, making them a popular choice for investors seeking to diversify their portfolio.

An Exchange-Traded Fund Is a Bundle of Stocks or Bonds