Basket of Stocks

A

The correct answer is A. Exchange-traded fund (ETF).

An ETF is a type of investment fund that holds a basket of securities, such as stocks or bonds, and tracks an underlying index, sector, industry, or asset class. ETFs are traded on exchanges, similar to stocks, and can be bought and sold throughout the trading day at market prices.

ETFs offer investors the ability to gain exposure to a diversified portfolio of securities with a single trade, making it an efficient way to invest in a particular sector, investment style, or geographic area. ETFs can also provide investors with low-cost access to a broad range of assets.

Compared to other investment funds, ETFs have some unique features. Unlike open-end mutual funds, ETF shares trade on an exchange and are bought and sold at market prices, which may differ from the fund's net asset value (NAV). ETFs also typically have lower expense ratios than mutual funds and can be more tax-efficient due to the way they are structured.

Overall, ETFs can be a powerful tool for investors seeking to gain diversified exposure to a particular sector or asset class while maintaining flexibility in their investment strategy.