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The ETF Report

An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other asset, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

Markets

Warren Buffett's favorite ETFs

While Warren Buffett is the largest investor in several of America's biggest companies, he also allocates some money into two ETFs that track the S&P 500, the broadest measure of U.S. stocks.