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What is an ETF? The short answer is that it's a security that trades like a stock, has the diversification of a fund, and is tax-friendly.
The first ETF debuted in January 1993 when the SPDR S&P 500 ETF Trust was launched. Since then, ETFs have increased in popularity. Today, there are more than 1,600 ETFs, with an ETF for nearly every sector and investment strategy.