What is 'Exchange-Traded Fund (ETF)'?

Dictionary

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

More terms

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

Earnings per share

We look at what earnings per share mean and how to calculate it

Withholding Tax

A tax deduction made at the source of the payment.

Stock Market

A place where shares of publicly listed companies are traded.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Account balance

The amount of money a user has stored in a financial repository.

Clean price

The quoted price of a gilt, which excludes accrued interest

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