Word of the Week:
ETF

Definition: An exchange-traded fund (ETF) is a collection of stocks and bonds (or other securities) pooled into a single fund. You can buy and sell shares of ETFs on a stock exchange the same way you buy and sell stocks. Although they’re very similar to mutual funds, unlike mutual funds, you can trade ETFs throughout the trading day.

Key Takeaway: ETFs have become wildly popular in recent years as investors have moved money into index funds and thanks to their lower cost and tax advantage over mutual funds.

Fun Fact:  There is more than $4 trillion invested in ETFs in the U.S.