Definition, Meaning & Synonyms

ETF

noun

/iː tiː ɛf/

Definition

An ETF, or Exchange-Traded Fund, is a type of investment fund that is traded on stock exchanges, much like individual stocks.

Examples

Investing in an ETF can be a smart option for those looking to diversify their portfolio.
Many investors prefer ETFs because they are often more cost-effective than mutual funds.
By purchasing an ETF, you can gain exposure to the entire stock market in one transaction.

Meaning

ETFs are designed to track the performance of an index, commodity, or a basket of assets, providing investors with diversification and exposure to various markets without having to purchase the assets individually.