ETF

An Exchange Traded Fund (ETF) is a special kind of stock that is traded on the stock exchange in a way to track the composite value of other stocks or an index.

"ET" stands for "exchange-traded" because they are traded on the stock market. "F" stands for "fund" because an ETF tracks a basket of many stocks or bonds in one tradeable security.

Trading ETFs is like trading stock.

See also

• top performing ETFs over five years
• Investopedia explanation with examples
• Greenlight explains ETFs