Glossary
Exchange Traded Fund (ETF)
1 min read
An exchange traded fund (ETF) is an individual security or basket of securities that trades on an exchange, in which the value of the ETF is based on the performance of underlying assets. Therefore, ETF share prices fluctuate as the ETF is bought and sold throughout market hours. ETFs can contain all types of investments, including stocks, commodities, or bonds. An ETF can be available only to U.S. markets and contain only U.S. holdings, or it can be diversified and offered globally.
Actively managed ETFs incur management fees, but ETFs that track a large basket of stocks or other assets are often less expensive than buying the stocks individually.