What does ETF stand for?

Exchange traded fund

ETF is a financial term that stands for Exchange Traded Fund. It’s a type of investment fund and they’re bought and sold on stock exchanges, much like individual stocks.

These funds are designed to track the performance of a specific commodity, index, or a group of assets such as an index fund. This means the value of an ETF can go up or down throughout the day as they are bought and sold.

ETFs are considered to be a popular type of exchange-traded product. They provide a way for investors to diversify their portfolios without having to buy each individual asset, index or commodity.

Example for using ‘ETF’ in a conversation

Hey, have you heard about ETFs? πŸ€”

Yeah, I have! They’re exchange traded funds. πŸ“ˆ

Exactly! They’re like stocks but track commodities or indexes. πŸ“Š

Right! And they can be bought and sold throughout the day. πŸ”„