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[quote=Anonymous]A mutual fund that you buy and sell on a securities exchange such as the NYSE Arca. A "plain" mutual fund would be something that you would buy and sell directly from the mutual fund company itself, not on a securities exchange. Many, but not all ETFs, track an index. For example, there are ETFs that "track" (try to hold the same stocks as) the S&P 500 Index. By investing in an ETF that tracks the S&P 500, it's kind of like investing in the S&P 500 (obviously not the same thing, but it's a way to try to gain exposure to the performance of the stocks in the S&P 500 Index.[/quote]
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