Exchange-traded fund. An ETF is a fund or collective investment vehicle that offers securities to the public that are listed or quoted on a securities exchange. ETF shares trade at market value rather than NAY. ETFs track the performance (or the inverse of the performance) of an index, a commodity, or a basket of assets or may reflect the performance of an active asset management strategy. The increased popularity of ETFs has brought about regulatory concerns that ETFs may impact market volatility or have other negative effects on the market.

Featured definitions