# ETF (Exchange-Traded Fund)

*Saving & Investing — Finicade finance glossary*

A fund that holds a whole basket of investments — often an entire index like the S&P 500 — and trades on the exchange like a single share. Low fees and instant diversification make index ETFs the default building block for most long-term investors.

**Also known as:** exchange-traded fund

**Related terms:** [Index Fund](https://finicade.com/glossary/index-fund), [Mutual Fund](https://finicade.com/glossary/mutual-fund), [Diversification](https://finicade.com/glossary/diversification)

Source: https://finicade.com/glossary/etf