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

More terms

Maturity value

What's the maturity value of a bond?

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Arithmetic Mean

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

Margin call

Learn what a margin call stands for in financial terms.

Total Return

This is the measurement of a fund’s performance in a specific period.

Junk Bond

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

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

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Exchange-Traded Fund (ETF)