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Quick Money Facts: The ABCs of ETFs

“ETF” stands for “exchange-traded fund,” an investment fund traded on stock exchanges. Depending on your age, your business school prof might not have covered ETFs because they only emerged in the U.S. in 1993. Today, they’re a popular investment vehicle. Like an index mutual fund, an ETF typically follows the performance of a particular index, such as the Standard & Poor’s 500 index.
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