Trading ETFs (exchange-traded fund") - Deepstash

Trading ETFs (exchange-traded fund")

Trading ETFs (exchange-traded fund")

An index is simply a collection (or "basket") of stocks. An ETF allows trading an index just like a stock. The best-known indexes are: 

  • S&P 500 (trading as SPY): the 500 U.S. stocks with the largest market caps
  • Dow Jones Industrial Average (trading as DIA): It always contains only 30 very large and well-known companies.
  • Nasdaq 100 (trading as QQQ): contains the most valuable 100 US tech companies.

Indexing is widely considered the safest and best way for most people to invest. 

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