Investing in the stock market can be daunting at times. There are countless stocks to choose from, and if you invest in the wrong places, you could potentially lose a lot of money.

Exchange-traded funds (ETFs) can be a simpler and more affordable way to invest, making them perfect for beginners or those looking for a low-effort investment. An ETF is a basket of securities bundled together into a single investment, meaning that by investing in just one share of an ETF, you're actually investing in dozens or hundreds of stocks at once.

The S&P 500 ETF tracks the S&P 500 (SNPINDEX: ^GSPC) index itself, so it includes the same stocks as the index and aims to mirror its performance. There are a couple of good reasons to invest in this type of ETF, as well as one reason you may want to avoid it.

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Source Fool.com