ETF

A fund listed on an exchange and traded like a stock

In detail

An ETF is a fund listed on an exchange, bought and sold exactly like a share. Most track an index, so a single purchase gives you everything inside that index. It has a live price throughout the trading day, and management fees tend to be lower than ordinary funds. Each trade carries the same brokerage commission a share would.

Example

One unit of an ETF tracking a 225-company index invests in 225 companies at once.

Related terms

Investment fund Index fund Nikkei 225

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For learning, not investment advice. Decisions are your own.