What ETFs are and why they belong in your portfolio

A single ticker can give you exposure to 500 companies. Spoiler: most professional investors cannot beat an index ETF. Here is why.


ETF stands for Exchange Traded Fund. In practice: an instrument you buy like a stock, but which holds dozens or hundreds of assets inside.

Why everyone recommends them

Warren Buffett — arguably the most successful investor in history — wrote that when he dies, his wife should put 90% of his estate in an S&P 500 ETF. Not in individual stocks. There is a reason.