ETF stands for Exchange Traded Funds . It's usually a group of multiple stocks of some related concept . For instance ARK deals with stocks related to space exploration . Another ETF may be concentrated in stocks which pay a routine dividend . A different EFT may concentrate on growth and the dividend would be less consistent than the previous noted ETF , but the value would grow more aggressively . SPY is based on the S&P 500 . One may concentrate on effecting climate change . Or one could concentrate on international high cap stocks . Like always , you need to research , decide what is important to you , how much risk you can handle , and make wise investments . ETF's can help you by deversevying , while still concentrating in that which interests you .