What is '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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Fundamentals

The data or information that is likely to impact a company's stock price.

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Exchange-Traded Fund (ETF)