Understanding QQQ, SPY, and the World of ETFs

ETFs, or Exchange-Traded Funds, are investment products that allow you to invest in a basket of stocks all at once. Rather than selecting individual stocks like Microsoft (MSFT) or Apple (AAPL), investors can opt for ETFs, which provide diversified exposure by tracking specific indices or market sectors.

For example, QQQ (QQQ) and SPY SPY(SPY) are two popular ETFs that track well-known indexes. QQQ follows the Nasdaq 100, which includes the 100 largest non-financial companies listed on the Nasdaq stock exchange, while SPY tracks the S&P 500, which comprises 500 of the largest companies listed on US stock exchanges. There are ETFs representing a bunch of Latin American companies. Those include Brazil (EWZ), Mexico (EWW) and the entire LatAm region (ILF).