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

Accounting standards

The rules a company follows when preparing financial statements.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

Costs and Charges

The money you pay when investing.

52-week high/low

The highest, or lowest, price a share has traded at in a passing year.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Diversification

An investment strategy in which money is put into a variety assets.

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Exchange-Traded Fund (ETF)