investing

etf

Exchange-Traded Fund — an investment fund that trades on a stock exchange, typically tracking an index.

Example

"She built her portfolio entirely with low-cost ETFs tracking major market indices."

💡 Memory Tip

ETF = Exchange Traded Fund. Like a mutual fund, but you can trade it on a stock exchange like a stock.

Etymology

Acronym for Exchange-Traded Fund — a fund that is traded (exchanged) on stock markets.

Common Misspellings

ETFE.T.F.etfse t f

Related Terms

index fundmutual fundexpense ratios&p 500

Want to understand money better? Get money tips and new terms in your inbox.