Invest in lots of companies at once!
Instead of buying one apple, you buy a whole basket with 100 different fruits!
That's an ETF!
Instead of buying one stock, you buy a "basket" that contains hundreds of different stocks!
✅ Diversification: Don't put all eggs in one basket!
✅ Low Fees: Much cheaper than hiring a manager
✅ Easy: Just one purchase gets you hundreds of stocks
✅ Transparent: You know exactly what's in it
🗺️ Index ETFs: S&P 500, tracks the whole market
🏭 Sector ETFs: Tech, healthcare, energy
🌍 International: Stocks from other countries
💰 Bonds: Safer, steady income
Single Stock:
🚀 Can go up 10x or more!
💥 Can also go to zero (company fails)
ETF:
📊 Grows steadily with the market
🛡️ Won't go to zero (too many companies)