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exchange traded fund

exchange traded fund

2 6.1
A fund you can buy and sell on a stock market that tracks an index like the S&P 500
  • noun
  • /ɪkˈsʧeɪndʒ ˈtrɛɪdɪd fʌnd/
  • Specialized
translation icon : fondo cotizado en bolsa
  • mutual and exchange traded fund
  • exchange traded fund that tracks
  • stocks and exchange traded funds

They are either mutual funds or exchange traded funds or ETFs.

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Examples

  • If you get in, you would buy or sell an exchange traded fund on the Stock Exchange.

  • Similar to mutual funds, exchange-traded funds focus on a single commodity or group of companies within an industry.

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  • With the popularity of exchange-traded funds, many investors no longer rely primarily on mutual funds.

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  • Current trends in exchange-traded funds favor oil, gold, agricultural investing, and silver.

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  • Exchange-traded funds (ETFs) have come a long way since January 1993 when the first ETF was introduced to the market.

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  • Exchange-traded funds offer strength and diversification for short-term or mid-term investment strategies.

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  • You can invest in an exchange traded fund to diversify your portfolio and track market trends.

  • Many investors prefer an exchange traded fund because it combines the benefits of stocks and mutual funds.

  • The value of the exchange traded fund fluctuated based on the performance of the underlying index.

Synonyms

ETF
vsexchange traded fund
  • Specialized
18 7.4

A fund you can buy and sell on the stock market like a share during the day

is the full formal name rather than the abbreviation
index fund
vsexchange traded fund
  • Specialized
7 4.8

A fund that buys the same stocks or bonds as a market index to match its returns

is the specific fund traded on exchanges rather than the broader pooled category

How Complex

derivative instrument
  • Specialized
8.7
exchange traded fund
  • Specialized
2 6.1
mutual fund
  • Specialized
82 3.5
stock
3.5
to bond
  • Specialized
12 6.6

Surface Forms

Morphology

exchange + trade + fund

The phrase literally describes a fund that is traded on an exchange: 'exchange' (place where stocks are traded) + 'traded' (being bought and sold) + 'fund' (a pooled investment). This compositional, adjective-noun pattern is regular and has equivalents in many languages, so a B1 learner who knows the parts can readily infer the meaning.

Etymology

Exchange traded fund comes from a simple image: a fund is like a basket of many stocks, and it is traded on an exchange, the stock market. So, the name means 'an investment fund you can buy and sell on a stock exchange', which is why it refers to that kind of investment.