Investing in the stock market is one of the most effective ways to build long-term wealth, but choosing the right investments is critical.

While the market has been rebounding in recent weeks, many investors are understandably concerned about an upcoming recession. Investing in an exchange-traded fund (ETF) can help limit your risk while still maximizing your returns.

An ETF is a basket of securities bundled together in a single investment. When you invest in just one ETF, then, you're actually investing in dozens or even hundreds of different stocks. That diversification helps reduce your risk, particularly during periods of market volatility.

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Source Fool.com