What is an 'Exchange-Traded Fund (ETF)'? Definition & meaning

More terms

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Accounting standards

The rules a company follows when preparing financial statements.

Arithmetic Mean

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

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Capital

Learn what financial capital means

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

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Exchange-Traded Fund (ETF)