A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Synonym: Exchange-Traded Fund
An investment vehicle which issues and trades shares representing an underlying basket of assets, typically the constituents of a major share-market index. ETFs allow small investors to diversify their risk over a broad spread of investments, tracking an index, while offering the flexibility of trading like a share. In particular, an ETF can be bought and sold throughout the trading day, not just once a day as is the case for most mutual funds. Like a share, an ETF can also be sold short.