Exchange Traded Fund (ETF)

By | 2017-09-13T14:13:19+00:00 13th September 2017|

An exchange traded fund is a fund that tracks an index, a commodity or a basket of assets. An ETF trades like a company share on an exchange. ETFs experience price changes throughout the day as they are bought and sold. For example, an ETF holds assets such as stocks or bonds and trades over the course of the trading day at approximately the same price as the net asset value of its underlying assets. Most ETFs track an index, such as the US S&P 500 Index.