Definition
A fund that holds a basket of investments and trades on an exchange like a single stock.
The story
Buy one share of an ETF that tracks the S&P 500 and you own a small slice of all 500 companies at once. ETFs trade all day at changing prices, unlike traditional mutual funds, which price once a day after the close. They can hold almost anything: stocks, bonds, gold, a single sector.
Why markets watch it
ETFs are one of the most common ways people get broad market exposure.
Connects to
Index fundMutual fundDiversificationMarket indexBitcoin ETFs
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms