Exchange-Traded Fund
/ˈɛksˌʧeɪnʤ ˈtrādəd fʌnd/
Definitions
- (n.) A pooled investment fund traded on stock exchanges, representing securities portfolios typically tracking an index or sector, subject to securities regulation.
Investors often choose an exchange-traded fund for its liquidity and diversified exposure under regulatory oversight.
Forms
- exchange-traded fund
- exchange-traded funds
Related terms
See also
Commentary
Technically structured to allow shares to be bought or sold throughout the trading day, ETFs combine features of mutual funds and stocks, thus requiring careful regulatory compliance in their creation and trading.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.