Finance glossary
ETF
Definition
An Exchange-Traded Fund that trades like a stock.
An exchange-traded fund holds a basket of assets like a mutual fund but trades on an exchange throughout the day at market prices. ETFs typically offer low fees, tax efficiency, and intraday liquidity, making them one of the most popular modern investment vehicles.
In a sentence
She bought an ETF that traded all day on the exchange, unlike a once-a-day mutual fund.
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