Dictionary
/
Exchange-Traded Fund (ETF)

Exchange-Traded Fund (ETF)

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

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

More terms

Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).
Read more

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
Read more

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.
Read more

Depository

We look at what is a depository and what role they play in keeping markets work.
Read more

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.
Read more

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.
Read more

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.
Read more

Balance sheet

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

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

Follow us on