What is an ETF?

An ETF is an acronym for Exchange Traded Funds. Quite simply, they are a basket of stocks and bonds but unlike but mutual funds they are traded on exchanges. You have trading abilities with exchange traded funds that you don't have with mutual funds. Typically with mutual funds if you buy or sell you get the end of day price. With exchange traded funds, you get the price at that moment in time if it's a market order, or a price that you specify if you execute a limit order. So basically an exchange traded fund can be treated like a stock.