Glossary › ETF

Trading glossary · markets

ETF

A fund you can buy and sell like one share, but that holds a whole basket of many things inside it.

The fuller meaning

An exchange-traded fund: a fund whose units trade on an exchange like a share while holding a basket of assets, often tracking an index. It spreads risk across its holdings; a common mistake is treating an ETF as if it were a single company's share.

ETF, also called exchange-traded fund.

Related words

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