- ETF
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A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. The ETF can be traded within the day, they can be shorted, purchased on margin and there even exists options on some ETFs. Bloomberg Financial Dictionary————See Exchange Traded Fund Euroclear Clearing and Settlement glossary————ETF ( Exchange traded fund)A collective investment vehicles which track indices - they can allow low cost exposure to the performance of an index as quickly and efficiently as the most liquid UK stocks. London Stock Exchange Glossary————Exchange Traded Fund NYSE Euronext Glossary
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Exchange-traded Fund. An investment vehicle which issues and trades shares representing an underlying basket of assets, typically the constituents of a major share-market index. ETFs allow small investors to diversify their risk over a broad spread of investments, tracking an index, while offering the flexibility of trading like a share.* * *
ETF UK US noun [S] FINANCE, STOCK MARKET► ABBREVIATION for Exchange-Traded Fund: a fund that follows the level of share prices on a stock market, and that is also traded on a market: »ETFs are a low-cost, flexible way to buy into a wide range of companies.
Financial and business terms. 2012.