ETF (Exchange-Traded Fund)
InvestingGlossary term
Definition
An investment fund that trades on stock exchanges, holding assets like stocks, commodities, or bonds. ETFs offer diversification and typically have lower fees than mutual funds.
Related terms
- Mutual FundAn investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities, professionally managed by a fund manager.
- Index FundA type of mutual fund or ETF designed to track the performance of a specific market index, like the S&P 500. Known for low fees and passive management strategy.
- StockA share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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