Lesson 1 of 4 · 4 min read
What is an ETF?
One purchase, hundreds of companies.
A basket of stocks
An ETF (Exchange Traded Fund) bundles many stocks into a single product that you trade like a share. Buy VWRL and you buy ~3,700 companies worldwide.
In practice
For the price of a single share (~€100), a world ETF gives you a tiny slice of Apple, Nestlé, Toyota, ASML and thousands of other companies all at once — instant diversification.
Passive tracking
Most ETFs simply track an index (like the S&P 500). No expensive fund manager trying to beat the market.
Remember this
- An ETF bundles hundreds to thousands of stocks into a single tradable product.
- With one purchase you get instant global diversification.
- Most ETFs passively track an index — no expensive fund manager.
- An ideal foundation for beginners: simple, broad and cheap.
There is a quiz for this lesson
2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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