ETF

noun

ˌē-ˌtē-ˈef 

plural ETFs

: an investment fund that is created to track the performance of a particular market index, commodity, industry, etc. : exchange-traded fund

While ETFs are similar to mutual funds in that they provide diversification by investing in a broad basket of securities, they do have one major difference: ETFs can trade like a stock during the trading day.

—Adam Shell

Examples of ETF in a Sentence

Recent Examples on the Web

That led Westwood to launch this new ETF, which will invest across the power ecosystem from traditional utilities to grid infrastructure and next-generation technologies. — Ian Thomas, CNBC, 26 Sep. 2026

Word History

First Known Use

1999, in the meaning defined above

Legal Definition

ETF

abbreviation

exchange-traded fund