Synonyms: ETF, ETFs
Exchange Traded Funds (“ETFs”) are – like ordinary shares – types of securities which are traded on a stock exchange.
ETFs combine the investment advantages of a managed fund with the ease and cost-effectiveness of share trading. In a lot of aspects they’re similar to mutual funds, with the exception that they are listed on stock exchanges and traded on any given day like ordinary stock.
ETFs can be made up of a variety of investments, including bonds, commodities, stocks or a mixture of any number of things. ETFs also have a marketable security, meaning they have an associated price allowing them to be easily bought and sold.