An ETF or exchange-traded fund is a cross between a traditional stock and a mutual fund. This type of investment vehicle is traded via stock exchanges in much the same manner as standard stocks. A fund, however, may include multiple assets that impact overall value. ETF purchases are subject to the same basic rules as stock purchases. They can fluctuate in value over the course of a trading day just like stocks. The buy-in on funds can be as low as a single share.

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