ETF
noun
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
Cite this Entry
“ETF.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/ETF. Accessed 25 Aug. 2026.
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