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Exchange Traded Fund (ETF)
An exchange-traded fund (ETF) is a pooled fund whose shares trade on an exchange during the day. ETFs can track an index or be actively managed; the structure does not require passive management.
What is Exchange Traded Fund (ETF)?
An exchange-traded fund (ETF) is a pooled investment fund whose shares trade on an exchange at market prices during the trading day. ETFs can be index-based or actively managed. An index-based ETF seeks to track a specified index; an active ETF’s manager chooses investments to pursue the fund’s stated objective. ETF describes the exchange-traded fund structure, not a requirement to follow an index.
Source: SEC Investor Bulletin: Exchange-Traded Funds.
Related tool: ETF Screener.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
