Smart Finance

Term

ETF

Exchange-traded fund: a basket of many assets (often a whole index) that trades like a single share. Cheap, diversified and the usual first investment.

In pesos: Instead of picking one stock, $5,000 MXN in an S&P 500 ETF buys a sliver of 500 companies at once.

Where to go deeper

2/2 6 min Read ETFs: five hundred companies in one go What an ETF is, why it diversifies, what its fee really costs you, two real examples (an S&P 500 ETF and NAFTRAC), and how it differs from picking single shares.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.