Exchange-Traded Fund
Definition
What is Exchange-Traded Fund?
A pooled fund whose units trade on an exchange throughout the trading day.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. can place an order for ETF units through a stockbrokerA licensed intermediary that buys and sells exchange-traded securities for clients. in much the same way as an exchange-listed share.
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Related Terms
Money Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Fund TypesEquity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.