ETF
A fund holding a basket of assets whose shares trade on an exchange like a single stock. Most track an index, though actively managed ETFs exist.
Also called exchange traded fund · exchange-traded fund · ETFs
A fund holding a basket of assets whose shares trade on an exchange like a single stock. Most track an index, though actively managed ETFs exist.
Why it matters
An ETF gives diversified exposure in one trade, but you still own whatever the fund holds — including its concentration.
Related terms
- Index
- Expense Ratio
- NAV
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