ETF (Exchange-Traded Fund)
An ETF is a basket of investments — often an entire index like the S&P 500 — that trades on an exchange like a single stock. It gives you instant diversification at a very low cost, and unlike a mutual fund you can buy or sell it anytime the market is open.
ETFs are usually more tax-efficient than mutual funds and often have lower expense ratios, which is why they've become the default vehicle for index investing. A total-market or S&P 500 ETF is the simplest one-fund way to own the broad stock market.
Put it to work
Investment Calculator
Project an investment portfolio's growth with monthly contributions — final value, your money vs market growth, and the year-by-year path.
ROI Calculator
Measure the return on any investment: total gain, total return (ROI), and the annualized return (CAGR) that lets you compare deals held for different lengths of time.