ETF stands for exchange-traded fund. It is a basket of investments, like stocks or bonds, that trades on a stock exchange just like a regular stock. You can buy and sell ETF shares throughout the trading day at changing prices. ETFs offer instant diversification and typically have lower costs than traditional mutual funds.
You could buy shares of an ETF that tracks clean energy companies. Instead of buying 20 different clean energy stocks individually, you buy one ETF share. The price of that share changes during the trading day based on supply and demand, and you can sell it whenever the stock market is open.
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