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I came across a quote today that immediately went on my list of favorites. It sums up in two sentences why I think compounding interest is the most important idea in investing.

Cutting the cable TV cord was one of the best things I’ve done to save a lot of money and become more productive. I hate having to pay $100 per month for 200 channels, of which I’d maybe only watch 5. I also really hate watching commercials! I’m already paying for the cable TV service, why do I have to pay again by watching commercials?!

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.