Exchange traded fund (ETF)

Exchange traded fund (ETF),

Definition of Exchange traded fund (ETF):

  1. Some well-known example is the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index. ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types. An exchange traded fund is a marketable security, meaning it has an associated price that allows it to be easily bought and sold.

  2. A type of investment fund that is traded on a stock exchange.

  3. An index-based fund that can be bought and sold like shares of stock. Exchange traded funds are comprised of a representative basket of the underlying securities.

  4. An exchange traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies. ETFs are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like ordinary stock.

How to use Exchange traded fund (ETF) in a sentence?

  1. Two exchange-traded funds that own biotechnology stocks both fell about 4% this week.
  2. ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually.
  3. ETFs can contain all types of investments including stocks, commodities, or bonds; some offer U.S. only holdings, while others are international.
  4. An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock.
  5. ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds that only trade once a day after the market closes.

Meaning of Exchange traded fund (ETF) & Exchange traded fund (ETF) Definition