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Decoder · Kinds of investments

ETF (exchange-traded fund)

A fund that trades on an exchange like a stock, during the day, at prices that move minute to minute. Many ETFs copy an index, just like index mutual funds. The difference is mostly plumbing — how and when you buy — not magic.

For your first $100: For your first $100, the plumbing matters less than the order: right account first, fund kind second, and an automatic monthly amount beats watching prices all day.

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See this word inside your order