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What is an ETF?

An exchange-traded fund (ETF) is an investment fund that is traded on stock exchanges throughout the trading day, much like stocks and unlike mutual funds. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. Wealthfront evaluates thousands of ETFs for attractive investments based on their low cost, tax efficiency, and stock-like features.

 

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