Etf (Noun)
Meaning
A mutual fund that is traded on a stock exchange.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investor decided to buy shares of an ETF that tracked the S&P 500 index to diversify her portfolio.
- Exchange-traded funds, or ETFs, offer a flexible and cost-effective way to invest in a variety of assets.
- The financial advisor recommended that his client sell her individual stocks and invest in a broad-based ETF instead.
- The ETF's net asset value is calculated at the end of each trading day, and its market price is determined by supply and demand.
- The popularity of ETFs has grown significantly in recent years due to their transparency, liquidity, and tax efficiency.