Exchange-Traded Fund

Exchange-traded fund

An exchange-traded fund is a type of investment fund that is also an exchange-traded product; i.e., it is bought and sold on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, cryptocurrency, debt, and futures contracts, as well as commodities such as gold bars. ETFs provide more diversification than owning an individual stock and more market liquidity than owning an individual bond. Most equity and fixed-income ETFs are index funds; they use passive management to replicate the performance of a stock market index or bond market index.

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• Related Topics:  Exchange-Traded Note (Etn)., Exchange-Traded Funds