ETF or exchange traded fund acts like stocks but they are different in some ways. One of the easiest ways to understand a exchange traded fund Is that a ETF is just a stocks put together. I like to use the example of oatmeal in the oatmeal variety pack. In the oatmeal variety pack they have different flavors in the box so you can try the different flavors. If you don’t like one flavor, there are other flavors that you can try out.
Stocks are just one stock so if something happens to that stock or company, then you could lose money but with an ETF since you have a lot of different companies, if one falls down the other companies can keep things going. In the video below I will show you one of the ETF that I like and what is an ETF in video:
