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First, let’s start with the basic definition of an Exchange Traded Fund (ETF). “An Exchange Traded Fund is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund, ” according to Investopedia.com.
Second, let’s look at the basic definition of a mutual fund.
The jargon of investing may seem designed to confuse, but understanding a few of the terms can help you navigate your way more easily through the maze of financial information.