ETF

Exchange-Traded Fund

An ETF is an investment fund that holds a basket of securities and trades on an exchange like a stock. Shares can be bought and sold throughout the trading day, and the price generally tracks the value of the underlying holdings, providing intraday liquidity.

ETFs are often used for diversified exposure with transparent holdings and relatively low fees. In the U.S., they are regulated by the SEC and are sometimes confused with EFT, which refers to electronic funds transfers. Investor.gov guide: Exchange-traded funds.

Related Terms

SEC

Securities and Exchange Commission

SEC is the U.S. federal agency responsible for enforcing securities laws, regulating securities mark...

CFA

Chartered Financial Analyst

A CFA is a professional designation given by the CFA Institute to investment professionals who have ...

Liquidity

Liquidity refers to how easily an asset can be converted to cash without significantly affecting its...

EFT

Electronic Funds Transfer

EFT is a broad term for any transfer of money from one bank account to another through electronic me...

Need to convert bank statements to spreadsheet format? Try our bank pdf converter to easily export your transaction data to Excel or CSV.

Glossary home

Convert 10 pages free per week.
Try your weirdest statement.

Convert a bank statement PDF free