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

More terms

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.

Custodian bank

Learn what a custodian bank is.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Oligopoly

A situation in which a market or industry is controlled by a small group of companies.

Volatility

A measure of how much the prices of an asset or index vary over time.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Depository

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

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Exchange-Traded Fund (ETF)