exchange-traded fund
Traded investment pool
An exchange-traded fund is an investment fund that trades on stock exchanges like individual shares.
ETFs typically track an index, commodity, or basket of assets, offering diversification without buying each component separately: She put her savings into a low-cost S&P 500 ETF.
Unlike mutual funds, ETFs can be bought and sold throughout the trading day at fluctuating prices.
Tradable pooled investment vehicle
- index fundInvestment matching market benchmark
- basketWoven carrying vessel
- holdingsProperty one owns
- portfolioCollected works or assets
securities · shares · units · NAV · redemption · sponsor · issuer · prospectus
Within a single day
- liquidityConvertibility to cash
- volumeAmount of space filled
- market orderInstant execution trade request
- limit orderPrice-specific buy/sell instruction
stop order · execution · ticker symbol · premium · discount · arbitrage · market maker · settlement
Standard for comparison
- trackingMonitoring location over time
- passiveNot actively participating
- S&P 500Major stock market index
- NASDAQElectronic securities exchange
Dow Jones · Russell · FTSE · replication · reconstitution · rebalancing
Covering many areas
- allocationDistribution of shares
- sectorsDistinct portions of something larger
- industriesOrganized commercial production sectors
- risk managementIdentifying and minimizing threats
correlation · hedging · global · domestic · balanced
Cost for professional oversight
- operating expensesRoutine business costs
- low-costRequiring little money
- fee structureOrganized pricing scheme
- tax efficiencyMinimizing what you owe
ETF
Tradable pooled investment vehicle
- index fundInvestment matching market benchmark
- basketWoven carrying vessel
- holdingsProperty one owns
portfolio · securities · shares · units · NAV · redemption · sponsor · issuer · prospectus · fund manager
intraday
Within a single day
- liquidityConvertibility to cash
- volumeAmount of space filled
- market orderInstant execution trade request
limit order · stop order · execution · ticker symbol · premium · discount · arbitrage · market maker · settlement · clearing
benchmark
Standard for comparison
- trackingMonitoring location over time
- passiveNot actively participating
- S&P 500Major stock market index
NASDAQ · Dow Jones · Russell · FTSE · replication · reconstitution · rebalancing
broad-based
Covering many areas
- allocationDistribution of shares
- sectorsDistinct portions of something larger
- industriesOrganized commercial production sectors
risk management · correlation · hedging · global · domestic · balanced
management fee
Cost for professional oversight
- operating expensesRoutine business costs
- low-costRequiring little money
- fee structureOrganized pricing scheme
- investment fundsmutual funds, mutual fund, hedge funds, index fund, index funds
exchange-traded fundprivate equity
Capital for unlisted companies
real estate · physical gold · tangible assets · collectibles · cash
exchange, traded, trade, trading, trader, trades, funding, funded, funder