An ETF is often defined as "a basket of securities." But what does that mean?
ETFs are just collections of individual stocks tied together in one tradable fund. It's filled with underlying securities that help the fund achieve a common strategy. For example, you might invest in QQQ, an ETF that tracks the Nasdaq 100 Index. Or you might pick TAN, which tracks companies involved in the development of solar power.
Read more about ETFs on our blog. https://www.raseedinvest.com/learn/breaking-down-stocks-vs-etfs
Written by Mohamad Daou
Updated over 3 years ago