ETF (Exchange-Traded Fund)
A basket of shares or bonds that trades on the ASX like a single stock, giving you instant diversification at a low cost.
An ETF is a fund — usually tracking an index like the ASX 200 or the S&P 500 — that you can buy and sell on the share market just like a single company.
When you buy one unit of an ETF, you indirectly own a slice of every holding inside it. That makes ETFs the easiest way for everyday Australians to build a diversified portfolio without picking individual stocks.
Most broad-market ETFs in Australia (VAS, VGS, A200, IVV) charge fees under 0.20% per year, which is materially cheaper than active managed funds.
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