An ETF (Exchange-Traded Fund) is a 'basket' of securities (Stocks, bonds and real estate) bundled up into one product. To put it in simple terms, it's the process of buying fractional shares in hundreds and even thousands of companies through one product. This will allow you to diversify your portfolio in a simplified and cheaper way. ETFs are traded just like stocks on stock exchanges. Most of them track an index such as the 'Dow Jones' or 'S&P 500'.