ETF - Deepstash
ETF

ETF

Curated from: dictionary.cambridge.org

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What's an ETF?

What's an ETF?

An ETF or Exchange-Traded Fund is a fund that follows the level of share prices on a stock market, and that is also traded on the market.

ETFs are a low-cost, flexible way to buy into a wide range of companies.

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Key Takeaways

  • An exchange traded fund (ETF) is a basket of securities that trade on an exchange just like a stock does.
  • 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.
  • ETFs can contain all types of investments including stocks, commodities, or bonds; some offer U.S.-only holdings, while others are international.
  • ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually does.

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